With the world on alert following the outbreak of Swine Flu, our paper on Bird Flu studying how companies are managing the threat of a pandemic in Asia is as relevant as ever. This paper was produced for open distribution.

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This special issue looks at China, one of the few bright spots in the global economy, and its conflicting country data. Why has a dramatic slump in export manufacturing had so little impact on local demand and GDP? We met with clients and dug deeper into macro data to make sense of conflicting stories.

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Much of the region is heavily reliant on export demand, particularly from the US. Exports are declining rapidly, hurting local economies. The manufacturing sector has been the hardest hit. Household spending has been unable to pick up the slack in most countries.

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