PIMCO report on Asia: How Asia’s Growth Transitions and Policy Experiments Are Shaping the Global Outlook
Key points are:
- Chinese GDP growth will downshift, averaging 6%-7.5% for the next five years as net exports and investment are reaching their limits.
- In Asia, Japan is perhaps the economy closest to the “T-junction” described in PIMCO’s global secular outlook: The destination of Japan’s journey looks increasingly uncertain, with multiple potential outcomes that could stabilize or destabilize the global economy and markets.
- We expect the New Normal to arrive in the Australian economy and markets as the intensity of Chinese policy stimulus subsides and domestic growth outside the mining sector remains subdued.
To read the PIMCO report, click here.