Global recession fears, Indonesia to move capital city

Weak data earlier this week from China and Europe and the fall in long term bond yields in the US have helped raise fears of a sharp slowdown in global economic growth. But even if the global economy continues to slow, regional export growth should start to pick up by the end of the year, if as we anticipate, the electronics sector continues to recover. Meanwhile, the Indonesian government has confirmed plans to move its capital city from Jakarta to the island of Borneo. The move should help to reduce congestion and pollution in Jakarta, but the costs of the move could still scupper the plans.