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Even before the financial crisis, household spending had seen the weakest growth rate among the East Asian tigers.
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While GDP growth for the region is expected in the 4% to 5% range, in line with the East Asian Tigers, currency pressures and inflation, along with the possibility of a substantial slowdown in either Brazil or China, pose huge risks for the region.
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The former South-East Asian tigers are finding it difficult to recover their lost dynamism.
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But provided liberalisation keeps creeping along, for a while an economy that increases by anywhere near 7% may seem impressive compared with the poor South-East Asian tigers that India was so keen to emulate.
ECONOMIST: India