According to ANZ analysts, the growth outlook remains challenging for Asia.
Key Quotes
“While Q2 GDP growth has seen more upside surprises than downside, exports are still weak with no indication of a turnaround in the near-term.”
“Asian central banks have eased monetary policy to try and offset external headwinds. However, overall financial conditions – based on our proprietary index – is still on the restrictive side and is not supportive of a near-term recovery in growth. More aggressive monetary stimulus may be needed to generate a meaningful easing in financial conditions.”
“For some economies, given low policy rates, there is a limit to how much rates can be cut. This puts more onus on fiscal policy to lend a helping hand. For certain economies, some loosening of fiscal policy is underway.”
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