There is little doubt that China’s economy has lost momentum recently but what is not clear is how deep or persistent this weakening is. Fixed asset investment — a major driver of China’s growth — is barely growing with some analysts estimating that it contracted in July and barely grew in August. With retail sales expanding at the slowest rate in 12 months, it looks like consumer spending, another major force behind China’s economy, is also sputtering. Thus, for now, we are not downgrading our forecasts for China’s growth this year. The bottom line — Southeast Asia must prepare for rougher timesThe region should expect three implications arising from the above discussion.

Source: The Edge Markets September 22, 2021 03:32 UTC