Via some news from LiveSquawk (free trial available)
It's the IMF's Regional Economic Outlook for Asia and the Pacific
I'll post it in full, but the bolding is mine:
- Asia remains the engine of global growth.
- Regional economy to expand by 5.3% despite softening.
- Domestic demand continues to show resilience across most of the region, driven by low unemployment, growth in disposable income, lower commodities prices, and macroeconomic stimulus.
- Policies and reforms needed to boost resilience.
- China slowdown & risks dominate outlook.
- China's growth is forecast to moderate to 6.5% this year and 6.2% in 2017. China's economy continues its rebalancing of shifting away from manufacturing and investment to services and consumption. While this transition to slower but more sustainable growth is desirable for both China and the global economy. Meanwhile, consumer expenditure has become a more important growth engine.
- Japan's growth is expected to continue at 0.5% in 2016, before dropping to -0.1% in 2017 as the effect of the widely anticipated consumption tax increase takes hold (although this forecast does not take into account likely growth-supporting policies to offset the increase). An ageing population and high public debt remain major drags on Japan's long-term growth.
- India has benefited from lower oil prices and remains the fastest-growing large economy in the world, with GDP expected to increase by 7.5% this year and next.
- For Malaysia, growth is expected to remain robust, underpinned by resilient domestic demand.
- The region faces a number of external challenges, including slow growth in advanced economies, a broad slowdown across emerging markets, weak global trade, persistently low commodity prices, and increasingly volatile global financial markets.
- The report also recognizes, however, that the outcome could turn out more positive than forecast. Low commodity prices could be a bigger boost to the region's economies than expected; and regional and multilateral trade agreements, such as the Trans-Pacific Partnership, could benefit Asia-Pacific even before they are ratified.
- While Asian economies have strong buffers and are relatively well positioned to face the challenges ahead, countries will need to adopt economic policies that shore up growth and reduce their exposure to global and regional risks. For instance, since monetary settings are broadly appropriate and inflation remains low, there is room to cut policy rates if needed to boost demand.
- On the fiscal front, gradual consolidation is generally desirable to rebuild policy space, but countries can adjust the composition of spending to allow for growth-friendly and much needed infrastructure and social spending in many economies. Flexible exchange rates should continue to be the first line of defence against external shocks.
- At the same time, foreign-exchange intervention and capital-flow measures could be deployed in special circumstances, such as disorderly market conditions.
