Asia Economy

With the US Federal Reserve set to reduce its bond buying activities as of January 2014, there has been growing speculation as to how great an impact the tapering will have on emerging markets, including Malaysia.

Although rocked by the worst typhoon in its history late last year, the Philippines was one of Asia’s 2013 success stories, maintaining strong macroeconomic fundamentals and steady GDP growth.

Over the past 12 months Thailand’s economy has come under growing pressure, with political unrest combining with falling industrial output and weakening exports to slow development and cool investor confidence.

With 13 consecutive years of growth under its belt, Papua New Guinea (PNG) is gearing up for the next phase in its economic development, which is set to be largely defined by the country’s new role as an exporter of liquefied natural gas (LNG).

The economy in Indonesia rounded out 2013 by posting relatively solid growth, despite a decline in global commodity prices and an increase in energy imports. The coming year’s performance is expected to be in high single digits, but risks include a tightening of external financing conditions and a softening of private consumption.

While rising domestic demand in Malaysia helped reassure investors after last summer’s regional downturn, concerns remain that the country is displaying an over-reliance on high domestic consumption levels to prop up growth.