“Still, parts of Asian economies have a way to go to recover, particularly on the investment side, on the construction side. Labour flows within the region have only just started to get back to normal. So the sort of labour shortages that have been holding back construction and industry are now easing and there’s plenty of scope for that to ease more. But, there is an issue. Asia is facing lots of headwinds and those headwinds to growth are mounting and the recovery is entering a much more difficult phase.”
“The biggest one is the external environment. Now, Asia is a very exported-dependent region. And so if there is a shallow recession in the US, the Eurozone, and in the UK as we and many others expect early next year, that’s going to weigh on demand for the goods that are produced in Asia. But it’s not just this usual relationship between growth in the advanced world and exports from Asia. There are some added factors. That means that we think that exports are going to slow over and above that usual relationship.” Alex Holmes, Senior Economics at Oxford Economics, answered during the interview with Pamela Ambler from IC Markets.
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