Growth in Emerging Asia, which has slowed sharply since the start of the year, may have bottomed out. According to our GDP Tracker, which uses monthly data for output and expenditure, regional GDP growth picked up slightly in May. That said, growth remains very weak by historical standards, and any recovery is likely to be relatively gradual. Inflation increased in the majority of countries in June, but in most places is not high enough to be of concern to policymakers. The region’s equity markets have rebounded strongly, following sharp falls in May and June.
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