WEAK demand for exports from Asia is casting a shadow over the economy this year, although growth in India is expected to accelerate into 2015 even as China slows in the face of a sliding property market.
But signs of stabilisation are emerging in China which grew by 7.5 per cent in April-June, thanks to a raft of government stimulus measures.
Chinese manufacturing expanded at its fastest pace in 18 months in July, according to a preliminary HSBC survey of purchasing managers, reported Reuters.
Growth is expected to slow to 7.2 per cent next year, according to analysts. That underlines the limited effect stimulus measures have had so far and reflects worries that a property market slump could worsen and hurt the broader economy.
Chinese exports were up by 7.2 per cent in June from a year earlier, and were 0.9 per cent higher in the first half compared with last year.
"The mini-stimulus measures have helped to support growth in the second quarter but we see some downside risks stemming from a property market correction due to oversupply," said Barclays Hong Kong economist Jian Chang.
Economists have cut growth forecasts for India, Indonesia, the Philippines, South Korea and Thailand, while Australia and Malaysia were predicted to expand at a slightly faster pace, the report said.
The forecast for Thailand was cut the most after months of political turmoil that led to a military coup in May, as well as the continuing weakness of exports. Its economy is expected to grow by 1.8 per cent in 2014.
For India, economists see 5.3 per cent growth for the current fiscal year, down from the 5.5 per cent seen in April.
Most Asian countries have begun increasing exports to the United States as its economy has rebounded following a dismal start to 2014 but orders to the euro zone, China and regional trade partners have stagnated or slipped.
"Despite the pick-up in exports to the US, emerging market shipments excluding those from China have yet to rise broadly," said JP Morgan economist David Hensley.
WORLD SHIPPING
29 July 2014 - 17:04
Asia exports fall on weaker demand, China property market a worry
WEAK demand for exports from Asia is casting a shadow over the economy this year, although growth in India is expected to accelerate into 2015 even as China slows in the face of a sliding property market.
WORLD SHIPPING
29 July 2014 - 17:04
Asia exports fall on weaker demand, China property market a worry
This news 6726 hits received.
These news may also interest you