Asia Pacific economic outlook – July 2008 |
The four countries covered in this month's edition are Australia, China, India, and Vietnam:
- Australia – After having uninterrupted growth for 16 years, the Australian economy is showing signs of overheating and the central bank is likely to increase interest rates. The Australian dollar is also surging to new highs and is likely to remain strong.
- China – Rising fuel and food prices are fueling the inflation fires. The Chinese yuan is also strengthening. The central bank will increase rates to bring down inflation.
- India – Like China, rising fuel and food prices have contributed to high inflation numbers in India. It is likely that it will remain high for the next few months and abate toward the end of the year. The central bank will raise interest rates along with increasing reserve ratios of banks.
- Vietnam – Vietnam’s inflation levels have shot through the roof. The Vietnamese dong is showing signs of weakening. Like the other Asian central banks, the Vietnamese central bank will have to raise rates to contain inflation.
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Asia Pacific economic outlook
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