The economic outlook for the Asia Pacific has improved, with overall regional growth estimates for 2017 upgraded slightly to 4.8% from 4.6%. APAC is expected to outperform versus key regions such as North America (2.1%) and Western Europe (1.7%). Improvements in global trade and therefore higher export growth were the key drivers behind the recent uplift in economists’ growth expectations for the region. However, there are some concerns around the impact of President Donald Trump’s stance regarding trade with the APAC region and beyond.
Since Trump has been in office, aside from some political posturing and tensions with North Korea, it appears he does not want to get heavily involved with the region and the US-Asia Pacific relationship could stabilise from here. The US has withdrawn from the Trans-Pacific Partnership (TPP) agreement, which is likely to push countries towards cooperating with China to improve global trade.
Source : M&G Real Estate