Asian Economies Beat Expectations Amid Energy Crisis, but Thailand and Philippines Lag Behind
Macro
Bloomberg reports that Asian economies from India and Malaysia to Australia expanded more strongly than expected in the past quarter, as governments accelerated energy procurement and implemented fiscal measures to support households. Meanwhile, the artificial intelligence (AI) investment wave has become a key driver for exports. India's GDP grew by 7.8%, Malaysia by 6%, and Singapore by 5.9%. Taiwan recorded its highest growth rate in 50 years, and South Korea saw its strongest performance since 2020. However, the recovery has been uneven, with Thailand and the Philippines lagging due to domestic pressures, while China has slowed down. Economists at Nomura expect Taiwan and Malaysia may raise interest rates within this year, and Australia may hike by 0.25% in September. Several central banks may need to tighten monetary policy over the next 6-12 months.
