Businesses in the Asian region may have avoided the worst of the credit market turmoil, but in a connected world economy, painful adjustments in one region cause ripples across the rest of the world. Some of these ripples will end up as real, tangible consequence for Asia, but for others the fear may turn out to be greater than the reality. It’s the difference between these, and how we tell which is which, that has got me thinking.

No one can deny that Europe faces a debt position that threatens some of the underpinning foundations of the banking system. At worst, we could see multiple defaults and a shrinking of the Eurozone—something almost inconceivable just a few short years ago.

On the other side of the Atlantic, the United States is experiencing a fragile recovery, but is wrestling with a mountain of debt in a presidential election year. This combination is less than ideal when there is an urgent need to gain consensus to confront economic challenges.

Despite some evidence of slowing, China remains a powerhouse economic force. Yet, with so much turmoil on world markets, can China and the Asian region sustain its momentum, or will it fall victim to the same forces that are clouding most of the world’s developed economies?

Rarely has the business environment been so daunting. Yet, it strikes me that it’s not just the reality, but the perception of economic instability that’s equally important in this climate. Of course, there are real and present economic threats, but the way that businesses interpret the economic signals, and the actions they take, will also determine how the Asian region copes.

There have been plenty of lessons learned from previous economic shocks in the region, and perhaps it’s this fear of history repeating that sees businesses taking cautious steps forward. No one wants to unnecessarily raise their risk profile in this environment, but missed opportunities are just as critical to avoid—and it’s this difficult balancing act that leaders across the region are now facing.

How exactly are Asia’s leaders weighing up the global economic news? What are they focusing on and how do they see the year ahead? The Asian Business Outlook, which was compiled with the help of more than 20 senior leaders across the region, examines the diversity of views and approaches to questions such as these.

Throughout the commentary, which provides an inside view of what businesses are thinking, planning and doing to address the challenges ahead, I was encouraged to see so many signs of positivity. Many leaders are expressing genuine excitement about the prospects for the region, and they are focusing their efforts on capturing these.

It’s true, there’s an awful lot to be concerned about in the global economic landscape, but there’s also plenty to be excited about. 

If you are interested to see all the comments and thoughts of Asian leaders, you can download the free paper here.