Over the past few weeks, Indonesia, Malaysia and Thailand all reported GDP data that were better than the consensus expected, reflecting strong domestic demand helping to offset export weakness. However, domestic demand in Asia is unlikely to stay as strong if, as we expect, the global economy remains weak for longer than is generally anticipated. Meanwhile, we believe that the recent increases in global commodity prices will be reversed and will not lead to an inflation spike in Asia. The upshot is that we continue to expect more policy loosening across the region.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services