Asia no longer seen as engine of global growth

Emerging Asian economies will contribute less to global growth this year than earlier expected, even as their major trading partners in the West show signs of recovery, a Reuters poll showed yesterday.

From China to India, Indonesia, Taiwan and Thailand, more than 225 economists polled between January 16 and Thursday have collectively downgraded or left unchanged growth estimates for nine of the top 13 economies in Asia outside of Japan.

At a time when developed economies are expected to beat last year's growth rates, the results imply that Asia, the recent engine of world growth, may see its contribution diminish.

"The days of double-digit growth are behind us, at least in the largest emerging economies," said BNP Paribas economist Dominic Bryant.

"China is slowing down as a result of repositioning itself to a domestic-demand driven economy. And since it makes up 50 per cent of Asia, there are bound to be some knock-on effects around the region."

After stunning the world by clocking over 10 per cent growth on average for the last three decades, China started last year to wean itself off credit and investments and changed track to increase domestic consumption.

As a result, its growth rate has steadily dipped. Data this month showed the economy grew 7.7 per cent in the last quarter of 2013.