Southeast Asia Growth To Moderate In 2016: Economist

KUALA LUMPUR, Jan 12 (Bernama) -- With limited physical stimulus, Southeast Asia's growth will moderate over the course of the year, says an economist. UBS Investment Bank Managing Director Senior Global Economist Paul Donovan said Korea, Indonesia and Malaysia are experiencing a very rapid rise in consumer debt levels. "Over the course of the last five or six years, it has taken us, for the most part, up to levels of private sector debt that we think cannot continue to increase," he said, adding banking houses will as a result prevent further credit increases coming through. Donovan was answering questions from the audience at the UBS Greater China Conference 2016 (GCC) themed Charting a New Course held in Shanghai, China Monday. The GCC is slated to be the ideal platform from which to assess China's efforts to chart a new course. Donovan said United States and European growth, which he estimates at 2.8 per cent and 1.8 per cent respectively, will generate two per cent real growth in Asian exports. He is also forecasting China's growth in the low four per cent range. -- BERNAMA