Long-term Asia outlook

China’s slowing economy, coupled with the weak recovery in leading industrial countries, is weighing heavily on the regional growth outlook. Following growth of 4.6% in Asia last year, output in the region is now expected to moderate somewhat in 2016. Despite the downturn in China, which is expected to grow by less than 7% this year, growth prospects in Asia should benefit from fast-growing nations like India and the Philippines. Both these countries still have a relatively young workforce as opposed to the aging populations of some of their regional peers. However, to help maintain their growth momentum, economic reforms will need to remain high on the agenda. In recent years, China has focused on transforming its economy to becoming more services based. And officials recently emphasized the importance of reforming and opening up the country to avoid a hard landing. However, growth is expected to come in well below the lower end of the 6.5-7.0% official target range.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s