“We have been making the case for some time now that Asia will outperform. While recent developments will likely present some downside to Asia’s growth in the form of an export recovery being constrained, we see domestic demand remaining robust,” says Ahya at a recent webinar.
Growth outperformance in Asia could just be getting started, as evidence of persistent drivers begins to emerge. A full-fledged Asian recovery could build up over the next half of the year, accelerating growth across the region, contrasting the economic slowdown in the US and Eurozone, says Morgan Stanley Research in its Asia Economics Mid-Year Outlook.
According to Morgan Stanley’s chief Asia economist Chetan Ahya, growth differentials between Asia and the US are seen to improve to a difference of some 460 basis points by the fourth quarter of this year — the highest since 2017.
