ASEAN to drive world economy in 2013

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ASEAN high-growth countries such as Malaysia, Indonesia, Thailand and the Philippines will underpin the world’s economic growth in 2013, according to a report by UK-based Standard Chartered Bank.

Emerging markets in general will continue to be the biggest driver of the global economy, said Greg Karpinski, Director of Infrastructure Principal Finance at the Standard Chartered Bank, at a private equity conference in Kuwait on December 26.

He added that the US will see some recovery but European markets would continue to wrestle with their economic problems.

He emphasised his optimism about Indonesia, Malaysia and the Philippines where growth is accelerating to above 10-year average rates. The Philippines is likely to be a high performer in 2013, growing an estimated 5.8 per cent. Thailand’s economic growth in 2013 should exceed 5.2 per cent, the country’s government said on December 25, Indonesia is expected to grow by 6.3 per cent, according to the World Bank, and Malaysia has set its growth target at 5 per cent. Vietnam targets 5.5 per cent growth in 2013, and Cambodia 6.7 per cent.

In terms of investments from the GCC, the Gulf countries looked at Asia as an underallocated region before 2008, but after the economic crisis, the story of Asia was reaffirmed, said Ahmad Al Hamad, Managing Director of Kuwait China Investment Company, at the conference.

“Asia comes out ahead in terms of policy and governments taking the right steps to build confidence and stability,” he said. “The policy tools are more robust than what you find in the rest of the world.”

Metals and mining, LNG and Gas, energy infrastructure, low cost health care solutions in emerging markets will present good investment opportunities in 2013, he added,

Meanwhile, the formerly driving forces of Asia’s economy, China and India, are losing their stand. China’s double digit growth is a thing of the past with a lower growth environment and highly indebted Chinese companies and banks.

India’s GDP is set to rise in 2013, but a weak rupee will likely hurt imports and current account balance and as a result investors remain skeptical of what will happen on the subcontinent.

All in all, the world economy is expected to see sluggish growth of 2.8 per cent in 2013 against the 2.6 per cent growth seen in 2012.

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Reading Time: 2 minutes

ASEAN high-growth countries such as Malaysia, Indonesia, Thailand and the Philippines will underpin the world’s economic growth in 2013, according to a report by UK-based Standard Chartered Bank.

Reading Time: 2 minutes

ASEAN high-growth countries such as Malaysia, Indonesia, Thailand and the Philippines will underpin the world’s economic growth in 2013, according to a report by UK-based Standard Chartered Bank.

Emerging markets in general will continue to be the biggest driver of the global economy, said Greg Karpinski, Director of Infrastructure Principal Finance at the Standard Chartered Bank, at a private equity conference in Kuwait on December 26.

He added that the US will see some recovery but European markets would continue to wrestle with their economic problems.

He emphasised his optimism about Indonesia, Malaysia and the Philippines where growth is accelerating to above 10-year average rates. The Philippines is likely to be a high performer in 2013, growing an estimated 5.8 per cent. Thailand’s economic growth in 2013 should exceed 5.2 per cent, the country’s government said on December 25, Indonesia is expected to grow by 6.3 per cent, according to the World Bank, and Malaysia has set its growth target at 5 per cent. Vietnam targets 5.5 per cent growth in 2013, and Cambodia 6.7 per cent.

In terms of investments from the GCC, the Gulf countries looked at Asia as an underallocated region before 2008, but after the economic crisis, the story of Asia was reaffirmed, said Ahmad Al Hamad, Managing Director of Kuwait China Investment Company, at the conference.

“Asia comes out ahead in terms of policy and governments taking the right steps to build confidence and stability,” he said. “The policy tools are more robust than what you find in the rest of the world.”

Metals and mining, LNG and Gas, energy infrastructure, low cost health care solutions in emerging markets will present good investment opportunities in 2013, he added,

Meanwhile, the formerly driving forces of Asia’s economy, China and India, are losing their stand. China’s double digit growth is a thing of the past with a lower growth environment and highly indebted Chinese companies and banks.

India’s GDP is set to rise in 2013, but a weak rupee will likely hurt imports and current account balance and as a result investors remain skeptical of what will happen on the subcontinent.

All in all, the world economy is expected to see sluggish growth of 2.8 per cent in 2013 against the 2.6 per cent growth seen in 2012.

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