A corner of Singapore capital (Source: VNA) Tokyo (VNA) - Southeast Asianeconomies will likely face continued external headwinds in the remaining monthsof 2019 as the US-China trade tensions weigh on the region, according to NikkeiAsia Review of Japan.
An article publishedrecently by Nikkei Asia Review said the fact pressures the governments of theregional countries to take steps such as cutting interest rates to boost theireconomies.
The trade tensions beganbiting Southeast Asia in late 2018. Official statistics showed that in thesecond quarter, the gross domestic product (GDP) of five out of the region's six major economies,including Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam,saw slower growth than in the previous quarter, with Thailand and Singaporesuffering the most because they face falling demand for their key manufacturingexports, such as electronic products.
In the April-June period, Thailand’s economy grew at its slowest pace in nearlyfive years, expanding 2.3 percent, while Singapore’s growth rate was only 0.1percent, the weakest in the last 10 years, due to a contraction in theelectronic sector.
Growth in Indonesia, the region's largest economy, hit a two-year low of 5.05percent in the second quarter due to falling prices for itscommodity exports, such as palm oil.
Vietnam, whose GDP rose 6.8 percent in the first quarter, saw growth tick downto 6.7 percent in the reviewed period.
The Philippines saw a similar decline from 5.6 percent to 5.5 percent.
Malaysia witnessed a growthof 4.9 percent, 0.4 percent higher than that in the first quarter, backed by a7.8 percent rise in private consumption.
Nikkei Asia Review quoted Margaret Yang, an analyst at CMCMarkets in Singapore, saying that Southeast Asian countries may face globalheadwinds of manufacturing contraction, trade risks and supply-chain shufflingover the course of the next few quarters.
“Apart from interest rate cuts, policymakers will perhaps need to also carryout fiscal stimulus, tax relief and employment incentives if a serious downturnis emerging”, she said.
“Apart from interest rate cuts, policymakers will perhaps need to also carryout fiscal stimulus, tax relief and employment incentives if a serious downturnis emerging”, she said.
With subdued growth in the second quarter and anuncertain external environment, the governments and central banks in the regionare under pressure to rev up their economies through monetary and fiscalmeasures in the coming months, the newspaper stressed.-VNA
VNA
