Double-digit growth in Asia looks to be a thing of the past. Global turmoil and slowing economic growth are cramping Asia’s economies, which include the emerging economies of Taiwan, Indonesia, and Thailand but exclude Japan.
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The Asian Development Bank says the emerging Asia economy will grow 6.1% in 2012 and 6.7% in 2013. This barely surpasses growth in 2009 when the financial crisis was at its peak.
The bank’s last forecasts were in April and estimated 2012 growth at 6.9% and at 7.3% in 2013.
The region’s economic behemoths—India and China—are experiencing the greatest slowdowns and are forecast to grow 5.6% and 7.7% respectively.
The Asian economy is expected to bottom out during the third quarter but estimates have been revised downward sharply, increasing uncertainty.
The region’s service sector suffers from poor infrastructure and lack of qualified workers. This reflects economists’ warnings that China and other emerging economies
need to focus on quality instead of speed in expanding their economies.
Government regulations continue to hamper growth in the service sector--a much larger component of China's economy than previously thought--and need to be lifted if China’s service economy is expected to improve.