Asia & The Slump In World Trade

Posted November 20, 2015

Asia is being hit hard by the slump in world trade that has resulted from the sharp economic slowdown in China. In the latest Macro Watch video, uploaded today, we take a look at the impact this trade crash is having on seven Asian countries: Japan, South Korea, Taiwan, Singapore, Malaysia, Thailand and Vietnam.

For each country, we look at:

Exports

Imports

The Current Account Balance

Inflation

GDP

The Currency, and

The Stock Market

Exports and imports have both plunged. Thus far, however, economic growth and stock prices have held up better than would have been expected. Currencies have been the big losers.

With no end in sight for the recession in China, the outlook for the rest of Asia is discouraging. Many countries are likely to fall into recession and deflation. Stocks will probably fall further. And currencies look to have further to depreciate, especially if the Fed hikes interest rates or if China devalues its currency again.

Vietnam alone stands out as the exception. Its economic prospects appear much more promising.

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