As this scenario unfolds, we suspect that the recovered parts of the global economy will see a vigorous new capital spending cycle that will help to raise economic growth worldwide. The driving forces for a capital spending surgeThe data on capital spending is showing only some tentative evidence of strong upside. These will create new business opportunities that will usher in large increases in capital spending. Conclusion: Asian exporting economies will be big winners from this spending surgeAs this multi-year capital spending boom unfolds, our region should benefit greatly. While Hong Kong no longer has a large manufacturing sector that could gain from the spillovers from this capital spending, its specialisation in financial and professional services could see it gain from higher demand for financing the capital spending boom, as will Singapore.

Source: The Edge Markets June 15, 2021 03:34 UTC