Asian economies contribute substantially to the global outline of fiscal opportunity. As such, once in a while it is potentially helpful to look at what they are – and are not offering. In a nutshell, here are some oversights of current status of economies in the region and how they impact investment opportunities.
The Good
Anticipated growth for economies in the region throughout this year, is 5.5% which is a little higher than the number for 2016. In addition, according to data released through the “2017 Regional Economic Outlook for Asia and Pacific: Preparing for Choppy Seas,” policy stimulus is maintain a healthy domestic demand in both China and Japan in the short term. This is positive for all of Asia’s economies.
The Bad
With the growth in economies, there are two potential problems (one shorter term and one longer):
- Making worldwide fiscal conditions more stringent.
- With the aging populations, there is the emergence of limited productivity union.
There are possible solutions to this such as an influx of women and migrant individuals joining the work force; more secure pension systems; supplementary trade and FDIs, etc.
The Ugly
While there is predicted additional growth for 2017 in the region, when looking at 2018, this seems to be reversed, most notably with Japan which has a predicted 0.6% growth rate. This has been explained as being due to the consolidation of fiscal policy and the proposed increase to consumption tax.
Ultimately, there is much to watch in the short and long-term with Asia’s economies.
