“Good news for Asia is that the region’s engine of growth – the Chinese economy – continues to steam up,” notes Prakash Sakpal, ING’s Asia Economist.
Key quotes
“Despite the trade dispute, China’s exports growth has been positive, while most other economies in the region have been posting export declines this year.”
“China’s April economic data flow starting next week will be closely watched for what it says about GDP growth in the current quarter. Released earlier this week, China’s purchasing manager indexes (PMIs) for April remained in the expansion zone (above 50 reading), albeit with some moderation. However, falling export orders component of the manufacturing PMI suggests to us that the authorities should maintain a stimulatory macroeconomic policy setting for now.”
“Trade, inflation, and GDP releases from the rest of the region crowd the calendar. Indonesia’s GDP growth in 1Q19 may have received some boost from election spending and just like Korea, the electronics-led slowdown has a firm grip on exports in Taiwan and the Philippines.”
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