UN warns of Asian economic slowdown
In a recent report, the UN warned that Asia may soon experience a collective economic slowdown. The report was upbeat, in that it forecasted regional real GDP growth of 6%. However, this figure represents a sharp drop from last year, when real GDP topped 7%. The report attributes this slowdown to a rise in global commodity prices and a weaker USD. The US is the world's largest buyer of Asian manufactured goods, and the weak USD makes Asian exports comparatively more expensive. The report also advised China to cool its economy, and prevent bubbles in asset prices from expanding. VOA news reports:
"Provided the growth is accompanied by faster productivity, that will be much better," a UN economist said. "But if growth is accompanied by more investment, that will just drive up inflationary pressures in China, which has implications in the rest of the world."
