FJP - Asia-Pacific Is Not Just China

2024-02-09 12:30:00 ET

Summary

• While the China macro story of ongoing transition is a headwind to the rest of Asia, there is more to the region's economic health than this.
• We see some glimmers of stronger export and production activity together with a more benign inflation backdrop and recovering domestic demand.
• Australia consumer price inflation has fallen from a high of 8.4% in December last year to just 3.4% in December 2023.

By Robert Carnell , Regional Head of Research, Asia-Pacific

Exports are looking better

Most Asian economies are very open to trade, and so a global slowdown ought to be bad news. Since Mainland China is typically the single biggest trade partner for Asian economies (India being an exception, which is one of the reasons why it outperformed the region as a whole in 2023), this ought to add a further dampener to export and consequently growth outlooks....

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