Over 2015 and 2016, economic growth of the Asia Pacific region is forecast to hold steady at 5.5% per annum, continuing to outperform the rest of the world by a large margin.
Accommodative monetary policy, a recovering global economy and lower energy prices are expected to support a stronger pace of growth in developed Asia. Net oil importers such as Singapore, Hong Kong and South Korea will be the main beneficiaries of the latter trend.
In Japan, domestic consumption has started to recover from the slump prompted by last year’s tax hike. More favourable business conditions, coupled with a strong labour market (including rising participation rate from female population) are boosting consumer sentiment. A weakened yen exchange rate, meanwhile, has helped fuel a surge of tourist arrivals in Japan of nearly 30% over 2014 to 13.5 million2 – the highest number of foreign visitors on record. This, in turn, has delivered a significant boost to retail sales.
Source : M&G Real Estate