Allianz Group expects Asian economy to grow 2.7% this year

Michael Hayser, chief economist of the German Allianz Group, said 25th that the Asian economic downturn would soon pass as a result of Asia's relatively strong banking system, higher monetary reserves, current account surpluses and low external debt.　　He expects Asian growth of 2.7% this year and a 6.5% per cent growth in China. As international trade stabilizes in the second half of 2009, economic growth in Asia will accelerate and the economy will grow by 5.6% in 2010, Heather said. But with a sharp reduction in U.S. imports and the importance of the US as a sales market, the Asian growth model will change, with export growth below the pre-crisis level and a smaller trade surplus. To sustain strong growth in the future, Asian emerging markets will need to take steps to support the growth of local demand.　　For the foreseeable future, America is unlikely to be the source of strong demand and import growth again. On the outlook for China's economy, he said, the Chinese economy has long been through the most difficult period of the crisis and has shown a rapid growth momentum. But the slump in export demand in the coming months will remain a major obstacle to growth, and credit-fuelled domestic demand will not last long.