Steady, if unspectacular, growth ahead

Most economies in Emerging Asia are likely to see growth accelerate gradually over the next year, helped by a combination of stronger demand from advanced economies and relatively loose monetary policy. The main exception is China, where the authorities are likely to accept a weaker pace of expansion as the price for more sustainable growth. Uncertainty over the timing of rate hikes in the US has the potential to cause renewed volatility in EM financial markets. But, with the exception of Indonesia, we think most Asian countries are well-placed to weather another bout of market turmoil.