China, Indonesia Leading Asia Pacific Economic Growth
China and Indonesia have been faring better than expected in the current recessionary climate, while Malaysia and Vietnam have lagged, according to Deloitte.
Highlights from June 2009 edition of the Deloittte’s Asia Pacific economic outlook:
- China – Despite the slowdown in both the external and domestic sectors, the economy is performing much better than expected on the back of the huge fiscal stimulus spending. There are however concerns that the lending boom may sour and spoil the party.
- Indonesia – Indonesia is the most optimistic country in the region and is likely to do perform much better than its neighbors. The central bank is likely to cut rates to ensure that high growth rates are sustained.
- Malaysia – The economy is performing much worse than expected because falling exports are impacting the manufacturing sector. The economy is very likely to shrink significantly in 2009. Of potential concern is the possible downgrading of nine undercapitalized banks.
- Vietnam – The economy grew at a much slower place in the first-quarter of 2009 compared to 2008. However, it is likely to perform much better in the coming quarters because of loose monetary policy and fiscal stimulus spending.
Meanwhile, Freedonia says the rate of of growth in construction spending in China is expected to slow to about 8% annually through 2013. That’s less than half the average rate for 2003-2008.
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