1997 Crisis

The 1997 Asian Financial Crisis was a sudden economic downturn that affected several Asian countries, starting with Thailand. It was triggered when local currencies, like Thailand’s baht, sharply devalued after speculative attacks, leading to loss of investor confidence. This caused stock markets to plunge, businesses to fail, and governments to seek international bailout packages. The crisis spread quickly, impacting countries like South Korea, Indonesia, and Malaysia, and resulted in widespread unemployment and poverty. It highlighted vulnerabilities in financial systems, emphasizing the importance of sound economic policies, regulatory oversight, and financial stability measures.