27/09/18

Asia Development Bank Warns US-China Trade War Could Trigger 2019 Asia Slowdown



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Asia Development Bank Warns US-China Trade War Could Trigger 2019 Asia Slowdown
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The Asian Development Bank (ADB) warned on Wednesday that growth prospects for Asia next year could slow substantially as the US-China trade war disrupts multinational corporations' supply chains, inflicting damage on the region's export-reliant economies.

Peak quantitative easing policies have been realized; central bank asset purchases $1.6tn in 2016, $2.3tn in 2017, $0.3tn in 2018, and will decline $0.2tn in 2019. It is late-cycle, and the Federal Reserve is tightening, which explains why global stocks are down YTD ex. US tech. Meanwhile, global liquidity is rapidly shrinking, and that has become a significant concern for Asian business activity by pushing up borrowing costs, while capital outflows are also a risk.


Reuters said the Manila-based institution kept its 2018 economic growth forecast for the ...

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