Increasing Downward Pressure on Economies as Trade Friction Intensifies

―Export Stagnation a Concern while Domestic Demand Remains Strong―

Research Director：Shinichi NISHIOKA

  Chief Forecaster

Deputy Director：Eriko TAKAHASHI

  Senior Economist

Economist ：Tetsuo KAN

  Economist

2019/06/06

JCER released June 2019 forecast on Asian Economies.

China/ASEAN4 Economic Outlook 

• China’s 2019 Q1 GDP rose 6.4% (y/y), unchanged from the previous quarter, as the effects of the stimulus packages began to materialize. Meanwhile, ASEAN4 economies slowed due to weak exports.
• The 2019 GDP outlook for China is in line with the government’s growth target (6.0-6.5%) supported by large-scale economic measures, though downward pressure on the economy is increasing with the escalation of the US-China trade dispute.
• Consumption will remain steady in ASEAN4 with price stability, however, there is concern about the stagnation of exports due to US-China friction. The 2019 GDP outlook has been revised downward. Local authorities have responded to the economic slowdown by introducing economic stimulus measures (Thailand) and cutting interest rates (Malaysia, the Philippines).

【China/ASEAN4 Economic Outlook】

This forecast is a part of the Short Term forecast No.178.