25 Muharram 1433
KUALA LUMPUR, Dec 20 ,2011 - Standard & Poor's Ratings Services (S&P) expects the economic growth prospects in the Asia-Pacific to remain resilient next year despite a softer US economic outlook and uncertainty surrounding European sovereign risks.
S&P said the region's public and private infrastructure sectors were also expected to continue to expand in 2012, fuelled by strong demand, broad-based economic activity, significant ongoing capital expenditure requirements and favourable demographics.
"In contrast to the economic and financial challenges plaguing Western governments, economic growth fundamentals and government fiscal positions in Asia-Pacific are generally sound," it said in the report, entitled 'A Slowdown in Europe And China and Sluggish Exports Moderate Asia-Pacific Credit Outlook in 2012'.
It said surging capital flows may reignite inflationary pressures, distort currency values and create asset bubbles in the region.
S&P said exports could also fall sharply as demand in developed markets remained constraints with the risks higher for South Korea, Taiwan and Singapore. It said the stable performance of assets underlying securitisation transactions in Asia-Pacific, with the exception of Japanese commercial real estate, would likely to continue in 2012.
Its credit analyst, Ian Thompson, said the region, however, would remain immune to the problems in the advanced economies given that Europe was an important trading partner. "Slowing growth in China will be another key issue to watch out for," he said.
Source- BERNAMA
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