'Dynamic' Asia remains fundamentally strong

Growth in Asia may suffer because of events in Europe and the United States but the "dynamic" region, led by China, remains fundamentally strong, Australian Treasurer Wayne Swan said on Tuesday. Fear has gripped investors in the Asia-Pacific since the unprecedented downgrade of United States debt by Standard & Poor's sent shock waves through markets already roiled by Europe's debt crisis. The turmoil continued unabated Tuesday with Asian stocks plunging further, deepening their already sharp losses. In spite of the market battering, Swan -- who oversaw the only advanced Western nation to weather the global downturn without going into recession -- said he was confident the region was well placed to ride out fresh storms. "I wake up every day and thank my lucky stars that I'm a finance minister in Australia, in the Asia-Pacific," he told ABC radio. "Because what we've seen in recent years is a shifting of the guard from West to East in the global economy and we are located in that part of the global economy that is growing strongly." Asian demand for its raw materials, coupled with one of the world's biggest fiscal stimulus packages as a percentage of gross domestic product, helped Australia through the global financial crisis almost unscathed. While its economy has hit some turbulence in 2011, Swan believes Asian nations, particularly China, can ride out the current economic uncertainties and emerge stronger, further supporting Australian growth. "We're not immune from events in Europe or in the United States, but here, we are fortunate to have a number of countries that are growing strongly -- China, which is growing around nine percent," he said. "It's not just a China story, it's a story of Indonesia, it's a story of India. It's a story of many other countries." Despite this, the treasurer acknowledged that there could be a slowing of Asian growth due to the events in the United States and Europe -- major export markets for powerhouse China. "It's a possibility. You can't rule anything out. We are in uncharted waters here," he said. "What I do know is that, particularly in China, but elsewhere in the region, there are domestic factors which mean that those countries will continue to grow. "They may not grow as strongly because of events elsewhere in Europe and in the United States. "But there are dynamics in their economy which relate to their population growth, which relate to productivity improvement, which mean that they can continue to grow in adverse circumstances." In a separate interview with the BBC, Swan urged a coordinated, global response to fix the fear and panic sweeping financial markets. "We've been dealing with these challenges through the G20 for some time now and I think it has been acknowledged that there will be a long and painful process of adjustment in both the United States and in Europe," he said. "And what is really important in the face of that is that countries put together credible fiscal consolidation plans from the long term point of view."