China: Although China’s economy continues to generate disappointing economic news, the soft landing scenario remains likely, given the efforts by the government to offset weak external demand. However, some indicators suggest the possibility that the landing could be a bit harder than expected.
India: The economic outlook remains weak, growth is decelerating, and consumer and business confidence are plummeting. Perhaps the only aspect of India not under a persistent cloud is the Indian landmass itself. According to recent estimates, the country is likely to receive 10 percent less rain this year than usual, and floods and droughts caused by an erratic monsoon are threatening to decimate agricultural production.
South Korea: South Korea’s economy has failed to recover as expected, and the impacts of a decelerating global economy continue to weigh heavily on the country’s growth prospects. A leading contributor: Overdependence on export-led growth, which has left the South Korean economy vulnerable to global macroeconomic uncertainties.
Australia: Two emerging concerns are looming over Australia’s prospects for modest growth this year: a flagging housing market and an economic slowdown in China.