Asia may escape market slowdown
Growth in the Asian markets is unlikely to slow this year, according to Alan Gibbs, manager of the Waverton Asia Pacific Fund.
Gibbs pointed out that, despite the impact the credit crunch has had on markets around the world, there has been no real sign of a serious slowdown in Asia. He said: “The infrastructure sectors across Asia and the Middle East seem likely to remain very strong through 2008. In China the authorities are still clearly intent on keeping a brake on growth through a combination of raised interest rates, increased reserve requirements, and, most important of all, central direction.”
Gibbs added that despite the Chinese government trying to reduce growth, consumption remains firm and the need to invest in power, rail and road networks will continue to build a strong economy.