Asia Economics Update Taiwan creeps out of recession Taiwan’s economy returned to growth in Q1, after two consecutive quarters of falling output at the end of last year. Nevertheless, growth remained lacklustre and given the economy’s export dependence... 30th April 2012 · 1 min read
Asia Economics Update Korea faces sub-trend growth this year and next Today’s GDP data from Korea show that quarterly growth picked up in Q1. Nonetheless, the economy has expanded at a sub-trend pace over the past year and growth is unlikely to pick up strongly amid... 26th April 2012 · 1 min read
Asia Economics Update Is Singapore overheating? Singapore’s economy is showing early signs of overheating. A global downturn would have a cooling effect, but tighter macroprudential controls could be needed. 23rd April 2012 · 1 min read
Asia Economics Update Rates on hold in the Philippines due to inflation risks The Philippines central bank (BSP) left its main policy rate on hold today at 4.0%, as expected. However, with inflationary pressures likely to remain moderate and global growth set to disappoint this... 19th April 2012 · 1 min read
Asia Economics Update India and Vietnam: Asia’s disappointing duo Growth has weakened significantly in both Vietnam and India over the past 12 months. In the next couple of years, neither economy looks like recapturing the impressive growth rates that were recorded... 18th April 2012 · 1 min read
Asia Economics Update Reserve Bank of India cuts repo rate, prioritising growth The Reserve Bank of India cut its key policy rate by 50bp today in response to slower growth and a fall in underlying inflation. We suspect it will deliver a further 50bp of rate cuts by year-end as... 17th April 2012 · 1 min read
Asia Economics Update Singapore’s central bank likely to reverse course in October The Monetary Authority of Singapore (MAS) unexpectedly tightened its policy stance today. The move was partly in response to Q1 GDP figures, also released today, which showed that the economy returned... 13th April 2012 · 1 min read
Asia Economics Update Bank Indonesia set to keep rates at record low Having cut rates by a cumulative 100bp since October, Bank Indonesia (BI) left its main policy rate on hold at a record low level for the second consecutive month today, as widely expected. Although... 12th April 2012 · 1 min read
Asia Economics Update Vietnam cuts rates again, more policy loosening likely The State Bank of Vietnam (SBV) today announced that it would be cutting interest rates by a further 100bp on Wednesday. The cut in interest rates, the second in as many months, comes amid recent... 10th April 2012 · 1 min read
Asia Economics Update Asia’s costly fuel subsidies to remain in place The recent increase in oil prices is putting the budgets of countries that operate fuel subsidy regimes under strain. Nevertheless, any meaningful reform of subsidy programmes across Asia looks... 9th April 2012 · 1 min read
Asia Economics Update Policy paralysis to continue in India Events over the past year have taken the shine off India’s economy as the growth rate has slowed, reform efforts have been blocked and slow and opaque decision-making has undermined investor... 4th April 2012 · 1 min read
Asia Economics Update March PMIs point to continued manufacturing recovery March PMIs for Asia suggested that a pick-up in trade is giving a boost to the region’s manufacturers. However, problems in the euro zone mean that the improvement could be short-lived. 3rd April 2012 · 1 min read
China Economics Update Is China's move up the value chain a threat to Asian economies? As China develops, its manufacturing firms are moving into higher-value sectors. While this is a boon for low-wage Asian economies that represent a good alternative for low-end producers... 29th March 2012 · 1 min read
Asia Economics Update Who in Asia will benefit from rising labour costs in China? After years of strong growth, China’s textile and apparel exports are now losing market share abroad. Indeed, high and rising labour costs in China mean the migration of low-end manufacturing out of... 28th March 2012 · 1 min read
Asia Economics Update A tough year ahead for Vietnam after Q1 growth slows sharply GDP in Vietnam grew by just 4.0% y/y in the first quarter of 2012 – the weakest rate of expansion since the first quarter of 2009. The economy faces a difficult year in 2012 due to a combination of... 26th March 2012 · 1 min read
Asia Economics Update New Zealand grinding out a moderate recovery Today’s GDP data show that New Zealand’s economy grew at a sluggish pace in Q4. Growth is likely to be weak in the near term as the temporary boost from the Rugby World Cup unwinds, but post... 22nd March 2012 · 1 min read
