Emerging Asia began the year with plenty of momentum, but the recovery is already showing signs of losing steam. Growth in 2013-14 is likely to be slower than has been the norm. Lacklustre global demand will weigh heavily on the region’s most trade-dependent economies. Meanwhile, structural problems will hold back growth in the region’s two biggest economies, China and India. Prospects are brightest in South East Asia, where growth is being supported by strong domestic demand. We expect inflation to remain low by historical standards over the next year, which will give central banks scope to either keep interest rates close to their current low levels or loosen policy further.
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 gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services