Low interest rates should continue to support economic growth in Emerging Asia for the rest of the year. Further ahead, however, we expect regional growth to slow. Much of this slowdown will be driven by China, where reduced policy stimulus and excess capacity will drag on growth. Problems in China will weigh heavily on the original Tiger economies of Hong Kong, Singapore, Korea and Taiwan, which are also being held back by a series of structural problems. Prospects are better elsewhere, however, with India and most of South East Asia set for a few years of decent growth.
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