ASEAN economies to see diverging growth outlooks: Moody's

NEW DELHI: The growth prospects of export oriented economies of South East Asia will be weaker in 2016 and 2017, while the countries driven by domestic demand will fare relatively better, Moody's Investors Service said today.

In its report titled 'Inside ASEAN', Moody's said export growth is slumping across the region, however, the overall economic impact will vary based on the relative importance of trade to GDP.

"The growth prospects of ASEAN's major export-oriented economies - Singapore, Malaysia and Thailand - will remain weaker than those of more domestic demand-driven economies, Indonesia and the Philippines, in 2016 and 2017," Moody's VP and Senior Research Analyst, Rahul Ghosh said.

Association of South East Asian Nations (ASEAN) was established in August, 1967.

Among the ASEAN members, total trade was highest in Singapore, followed by Malaysia and Thailand. It was low in Indonesia and Philippines.

"Singapore, Malaysia and Thailand are susceptible to a prolonged period of subdued global demand via both the export channel and weaker investment demand," Ghosh said.

Moody's forecasts that G20 GDP would grow at 2.6 per cent in 2016, similar to last year's, and rise to 2.9 per cent in 2017. "Downside risks to global growth are increasing," he added.