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Are Asia’s productive economies losing their edge?

Growth in productivity is slowing at a rapid pace across Asia, says Frederic Neumann, economist at HSBC, which he believes could dent the region’s competitive edge, especially as a low cost manufacturing hub.

Neumann, who heads Asian economics research at the bank, told CNBC that today 30 percent more investment is required to generate a unit of GDP compared with six years ago, signaling a decline in production efficiencies across sectors in Asia ex-Japan.

He adds that a further increase in investment needs to boost productivity would "raise a red flag". "The worry remains that Asia is no longer getting quite the GDP bang for its investment buck that it used to," he said.
 

(Source: CNBC)