Asian Countries See Growth Deteriorating in Q1

Countries across Asia are beginning to see their growth deteriorate as ongoing problems in the eurozone, persistent malaise in the US, and a government-engineered slowdown in China undermine the region’s prospects. Several ASEAN countries have already begun cutting interest rates to spur growth; however, it is unlikely that their efforts will be sufficient to halt the regional slowdown

Bangladesh: Bangladesh is not likely to be able to sustain strong economic growth due to its weak fundamentals as well as the global slowdown
Cambodia: Cambodia’s GDP growth in the new year will likely be hit by the devastating floods and global economic slowdown
China: Scarce labor and rising wages are problems no longer limited to producers operating in coastal China
India: Companies should begin making contingency plans for a stagflation scenario in 2012
Indonesia: A new land acquisition bill will help accelerate Indonesia’s infrastructure development and ease bottlenecks in the economy
Japan: Companies should make contingency plans for significant power shortages in Japan this summer
Malaysia: Rising global volatility and a broad slowdown in Asia are undermining the confidence of Malaysia’s businesses and consumers
Pakistan: Companies should make contingency plans to deal with a weaker rupee as Pakistan’s currency may depreciate over the coming months
Philippines: Although Manila has begun taking steps to protect the Philippines’ growth, the country remains relatively exposed to a global slowdown
South Korea: A new FTA with the US will have a dramatic effect on the competitive landscape of several major industries across Korea
Taiwan: Growth is strong based on regional demand; however, caution is needed as trade might falter with global economic uncertainty
Thailand: A newly-announced flood defense plan along with recent monetary easing should help spur Thailand’s slowing growth
Vietnam: Companies should make plans to deal with striking workers as the labor unrest that is rocking Vietnam is unlikely to subside in H1 2012