The January 2010 edition of the Asia Pacific economic outlook gives a near-term outlook for Australia, China, India, and Japan.
- Australia – The economy is in a fairly good shape, though businesses are cautious and may remain so for another couple of months. The primary concern for businesses at this point is whether the world economy is on a sustainable path to recovery. A strengthening currency and the possibility of further rate hikes by the RBA would also play on the minds of business leaders.
- China – Growth accelerated sharply in the second half of 2009 and the economy is expected to report extremely good numbers for the last quarter. The economy is likely to continue to outperform the rest of the world with both rising domestic consumption and recovery in exports likely to play a role.
- India – Having expanded 7 percent in the period April–September 2009 and with industrial production picking up strongly, the Indian economy is looking more upbeat now. Both manufacturing and services sectors are showing signs of strong revival, and the fiscal and monetary policies will likely remain supportive in the first half of 2010.
- Japan – Business investment is not picking up, unemployment continues to remain high, and deflation is likely to continue through 2010. While doubts remain about the strength of the economic revival, and possibilities of a double dip are not completely ruled out, it is likely that the economy will continue to see tepid growth in the coming months.
To view the full report, visit: Asia Pacific economic outlook – January 2010.