View more on these topics

Asia set to survive slowdown

Fidelity International Asia CIO Kathryn Matthews believes growth in the region will stay remain strong despite an economic slowdown.

Matthews says that while growth will be off recent peaks in the market, a forecast GDP of 7.5 per cent for Asia ex-Japan is still five percentage points greater than Japan, the UK and Europe.

Matthews points to national savings increasing five-fold as rationale for the strong outlook, particularly at a time when people in the West are struggling with debt.

Corporate debt levels have also fallen with the debt to equity ratio now below 20 per cent – compared to 80 per cent a decade ago.

The growth in Asian exports to the US has tailed off markedly in the past two years, from 18.6 per cent in March 2006 to 3.1 per cent in March 2008. However, this has been counteracted by a rise of almost 8 per cent in commodity exports, while exports to the EU have also risen by almost 3 per cent.

Matthews says that inflationary concerns do remain prominent for all markets.

“there has been an increasing realisation in some countries that inflation won’t go away quickly and governments have started to take some action by raising interest rates or through other more restrictive measures.”

“Asia’s contribution to global GDP was higher than both the US and Europe in 2007. Moreover, there is increasing breadth of investment opportunity, particularly after the large number of IPOs seen in recent years. While inflation remains a concern in the short-term, the long-term picture for the region is very positive.”

Recommended

That shrinking feeling

New Star chief economist Simon Ward says Northern Rock’s eagerness to repay its £26.9bn Bank of England loan is exacerbating the mortgage market squeeze.

Means-test fear over pension ban

Government plans to ban firms from encouraging or forcing staff to opt out of personal accounts could compromise well-intentioned employers concerned over meantesting.Hamish Wilson actuarial and pensions consultancy partner John Branford says it would be “scandalous” if employers were penalised for alerting staff to the fact they may lose out on means-tested benefits.Branford says: “We […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com