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Except for Myanmar, Southeast Asia showed solid economic performance in 2007. Domestic political uncertainty did not necessarily affect growth rates: for instance, the Philippines did particularly well, though Thailand slowed down a bit. However, the year ended on a note of caution in view of signs of a slowing down of the U.S. economy in the final quarter amidst a severe downturn in the U.S. housing market and fallout from the sub-prime mortgage crisis.

In the arena of politics, there was no major change. The most notable event of 2007 was the unrest in Myanmar though it was contained by the regime. There was also continuing political uncertainty in Thailand and some turbulence in the ...

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