Thursday, September 29, 2016

Another Year Of Subdued Economic Growth In 2017

Economic Research
29 September 2016
ASEAN

Economic Outlook





The ASEAN-5, in our view, will likely have to fall back again on domestic spending to keep their economies going in 2017, as exports will likely remain sluggish. Some countries, however, will have difficulties to spearhead economic growth using domestic demand due to fiscal constraint.

Governments in Philippines and Thailand are stepping up their efforts to support growth and we envisage the former’s economic growth to inch higher to 6.8% in 2017, while the latter’s growth to catch up and expand by 3.8% during the year.

Indonesia and Malaysia will likely face some constraints in using fiscal policies due to weakening revenue, especially in the case of the latter. However, the aggressive monetary policy easing in Indonesia is expected to overwhelm the moderate increase in fiscal spending, resulting in stronger GDP growth of 5.3% in 2017. Malaysia may not have that luxury and its growth will likely remain subdued at 4.0%, while Singapore’s growth is expected to weaken to 1.4% in 2017 due to sluggish exports.


Economist:  Peck Boon Soon  | +603 9280 2163


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