Description

Increase in public expenditure on infrastructure and spur in investment are expected to be the primary growth drivers of the emerging Asia-Pacific region during H2 2015. Other factors that drive growth include rise in investment, growth in public expenditure, robust infrastructural development, and higher employment. While a positive growth outlook is backed partly by declining oil prices, any untoward reversal of oil price trend could bring about sudden growth impediment in the region. Sound credit expansion management is essential as the growing capital inflow into the region comes with the risk of mounting household debts and property price bubbles. However, the recovery of the US market is likely to improve the exports demand in the emerging APAC region. Governments’ plans to increase public expenditure are further projected to boost domestic demand and raise consumer and investor confidence levels during H2 2015.