S&P cuts GDP forecasts for China, India, Japan, S Korea
14 May 2013
In a new report published today, Standard & Poor's Ratings Services said that although Asia Pacific continues to record strong real GDP growth relative to other regions, activity indicators in early 2013 suggest that the rebound that began in the second half of 2012 has lost some traction.
As a result of the softer than anticipated traction, Standard & Poor's has lowered slightly its base case forecasts of 2013 real GDP growth for some countries.
This sees China revised to 7.9 per cent, Hong Kong to 3 per cent, India to 6 per cent, Japan to 0.6 per cent, South Korea to 2.8 per cent, Singapore to 1.9 per cent, Thailand to 4.2 per cent, and Vietnam to 5.3 per cent.
An upward revision has been made to Malaysia, which is now 5.5 per cent; the Philippines now at 6.5 per cent; and Taiwan to 3.8 per cent - reflecting the ongoing strength of those economies.
"Our revised base case outlook for Asia Pacific is that growth in most of the region will hold steady or pick up slightly into 2014," S&P said in a ststement.
It added, "We expect that notwithstanding Asia Pacific's economic performance relative to other regions, the fortunes of the region's economies (developed and emerging) are still vulnerable to: any deepening of the economic (or political) crisis in the eurozone; a slowdown in US growth and ongoing fiscal management, and any slowdown in China's economy."
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