Near-term macro conditions are set to remain challenging in the Asia Pacific (APAC) region relative to historical growth rates. Headline GDP growth is expected to average 4.2% per annum (p.a.) this year compared to 5.0% p.a. achieved over the past decade. The hit to global trade and accompanying pullback in manufacturing output are constraining economic growth in the region. Macro uncertainty, financial market volatility and limited credit availability mean that the corporate sector has been reluctant to commit to large spending projects, thereby constraining private capital expenditure.
Source : UBS AG