Asia Pacific Financial Services Insights
Macroeconomics & Geopolitics
Banks, buy-side firms and corporates are facing increasing challenges to make investment and lending decisions in a complex and uncertain global macroeconomic environment. From geopolitical tensions, China’s economic transition, financial markets events to Brexit, US policies on regulation, tax, trade and more; this section will cover the latest global economic forecasts, as well as analysis on country risks and economic indicators for Asia financial markets.
Latest Insights
Global economic growth depends increasingly on COVID-19 vaccination progress
In 2021 and 2022, economic growth will be linked to COVID-19 vaccination progress. Countries with low vaccination rates face increased risks from the Delta variant of the virus, adding to the urgency of stepping up international vaccination campaigns. In countries that can safely reopen, the resilience of spending on services will deliver robust economic growth.
Understanding … PMI suppliers' delivery times: A widely used indicator of supply delays, capacity constraints and price pressures
The suppliers' delivery times index from S&P Global's PMI business surveys captures the extent of supply chain delays in an economy, which in turn acts as a useful barometer of capacity constraints. The index therefore helps gauge the degree to which the current demand/supply environment is indicative of either a buyers'- or sellers'-market, and hence provides valuable information on developing inflation trends.
Japan shows further divergence from other developed economies as virus disruptions continue
The au Jibun Bank Flash Japan Composite PMI, compiled by S&P Global and published ahead of the final PMI results, indicated Japan's private sector shrank for a third straight month in July. The Flash Composite PMI Output Index slipped to 47.7 in July from 48.9 in June, indicating an increased rate of decline.