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East Asia Updates | Quarterly Edition - October 2018

East Asia Updates | Quarterly Edition - October 2018
12 October 2018
Rully Prassetya

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The challenging economic conditions in the second quarter (Q2) of 2018 continued into the third quarter (Q3). Economic performance in advanced economies remains on two speeds: the United States (US) has continued to grow at a faster pace, while the eurozone is showing early signs of deceleration. In the East Asian region, the Q2 gross domestic product (GDP) growth rate in most countries was slow compared to the first quarter (Q1), driven mainly by a deceleration in exports. The Q3 manufacturing Purchasing Manager Index (PMI) for the region does not indicate a substantial turnaround in economic activity. Deceleration in the export growth rate appears to have bottomed out at the middle of Q2, however there is no sign of a firm pickup. Capital outflows from emerging markets and the strengthening of the US dollar also continued during Q3 in addition to uncertainty in international trade. Read more.

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