The July 2013 edition of the Asia Pacific Economic Outlook gives a near-term outlook for Australia, China, India, and Indonesia.
Australia: After successfully navigating the previous global downturn, Australia is now struggling to grow. The economy has decelerated due to slower domestic demand, and political uncertainties are compounding the country’s many challenges.
China: China’s banking system is at a crossroads. It is going through a traumatic shift brought on by a government determined to alleviate financial imbalances, even at the temporary cost of slower growth.
India: The challenges to India’s growth appear to be much bigger than the opportunities. While old challenges persist, new challenges—such as the reversal of capital inflows and steep currency depreciation—are emerging.
Indonesia: A probable revival in exports in the latter half of 2013 is likely to boost the Indonesian economy, which is already benefitting from strong consumer spending and investment. However, slowing economic growth in China could push commodity prices lower and thus curb exports.