Asia rebounded strongly from the global financial crisis. But as international investors move large amounts of capital into Asian economies, concerns mount about inflation and volatility. Economists say Asia's experience in the 1997 financial crisis has left it stronger to withstand the challenge.
With low interest rates in the U.S. and Europe, international investors are moving billions of dollars into Asia, seeking higher returns.
Nalin Chutchotitham, economic research specialist at Kasikornbank in Bangkok, expects foreign capital to keep coming in the short term.
"The positive side of things is that capital cost in Asia has become cheaper because of these capital flows coming in," said Nalin.
That allows companies to expand and create new jobs.
And it also helped pushed up the value of Asian currencies, making imported raw materials cheaper. However, the downside of that is that a stronger currency makes a country's exports more expensive, which worries business leaders in Asia's export-driven economies.
