Business

Report: South-east Asia economic growth to slow to 4.5% this year

Economic growth in the region is tipped to ease this year amid a fresh round of tariffs and trade restrictions by the US and China, a report noted yesterday.

British advisory firm Oxford Economics has forecast expansion to ease to 4.5 per cent this year from 5.1 per cent last year, before stabilising at 4.5 per cent next year.

The quarterly report, commissioned by the Institute of Chartered Accountants in England and Wales (ICAEW), focused on Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

"Amid ongoing global headwinds and uncertainty around the outcome of US-China trade talks, we expect to see a further deterioration in economic prospects across the region," said Ms Sian Fenner, ICAEW economic adviser and Oxford Economics' lead Asia economist.

Mr Mark Billington, ICAEW regional director for greater China and South-east Asia, noted the trade outlook will vary across the region, with growth set to stay below potential in Indonesia, the Philippines and Thailand, and Singapore braces for the hardest hit.

Overall gross domestic product growth across the region slowed to 4 per cent in the first half of the year from 4.5 per cent in the second half of last year, the report stated. - THE STRAITS TIMES

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