Asia’s economic growth looks set to stumble over the next few months, prompting a flurry of interest rate cuts and a spike in stimulus spending that may ultimately pave the way for a strong recovery in the second half of 2012.

"The catch-phrase for 2012 is the Asia yo-yo," said Rob Subbaraman, chief Asia economist at Nomura in Hong Kong. "The harder Asia’s economies are hit, the stronger the tailwinds for a bounce back."

India, Indonesia, Thailand and the Philippines are widely expected to lower interest rates next year. Elections in Taiwan, Malaysia and South Korea may shake loose even more government spending. China will most likely continue cutting banks’ reserve requirements to try to spur more lending.