Asia’s Rising Economic Stars Lose Luster as China growth slows down
From Bloomberg, Jul 12, 2015
For years after the 2008 financial crisis, Asia’s rapidly expanding economies propped up global growth, with China clocking a pace of more than 9 percent, pulling along its neighbors. That is threatened now.
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The report shows economic weaknesses across the Asia region, “from Indonesian borrowing needs to record Korean household debt and the bureaucratic and corruption hurdles in the Philippines that hold back its infrastructure projects.”
The required exports to feed the Asian growth is falling in nine among 12 main Asian economies, according to data compiled by Bloomberg. This Asian slump, which spans India to Malaysia and South Korea, is partly a consequence of China’s growth deceleration — to a growth estimated at 6.8 percent for last fiscal quarter… … But unlike the global slowdown in 2008-09 when Asia was primed to unleash stimulus, this time the region is saddled with debt.
This time they need a Plan B. Their rail and port projects justified in large part to support exports to China are now threatened as to rail feasibility. What do you hear?
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