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- Asia’s growth will continue to depend on China even as it focuses on domestic economy, experts say
Asia’s growth will continue to depend on China even as it focuses on domestic economy, experts say
Analysts told CNBC that China might be looking more toward its domestic economy now, but its growth will continue to be crucial for the Asian region.
Calling its latest GDP print “stunning” when the rest of the world is in a “dire” recession due to the pandemic, Cornell University’s Eswar Prasad said: “I think China is going to remain important for demand in the Asian region.”
“And ultimately given the size of its economy, Asia cannot prosper unless China prospers,” the professor told, in response to a question on what China’s economic recovery means for Asia when the world’s second-largest economy is focusing on its domestic growth.
China reported that its third-quarter GDP growth was up 4.9% from a year ago — lower than the 5.2% that economists expected.
“That China was able to grow as fast as it did given the weakness all across the rest of the global economy right now, is quite remarkable,” said Steve Cochrane, chief APAC economist at Moody’s Analytics.
Going forward, however, China needs to focus on its small and medium enterprises which will be important for its growth, the analysts say.
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