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Komfie Manalo, Opalesque Asia: The economic slowdown in China and Japan would put pressure in the Asian
region, said California-based global investment management firm Pacific
Investment Management Company or PIMCO.
In its third quarter economic outlook, PIMCO said that its forecast for the
global economy is below consensus mainly because of its views for
regions outside of the U.S., including Asia, the emerging markets and
Europe, although higher growth in the U.S. should offset some of the
slowdown we see coming from China.
"Japan made a kick start under so-called Abenomics with massive monetary
and fiscal reflation policies, but the recent data suggest to us that
the effectiveness of those cyclical policies are already challenged by
secular and structural headwinds," PIMCO said and added, Australia’s
economy is rebalancing away from mining assisted growth: Our base case
is that monetary policy remains unchanged over the cyclical horizon, and
consistent with our growth outlook, risks remain skewed to the downside."
What’s slowing down China?
Scott Mather, CIO U.S. Core Strategies and former head of global bonds
and emerging markets, said that from a global perspective, the U.S. is
to a large extent a stand-out right now, and higher growth there should
offset some of the slow...................... To view our full article Click here
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