The Eurozone has dampened export prospects and investment sentiment in the Asia Pacific and has been doing so since late 2011, according to Standard & Poor’s.
Standard & Poor’s rating service says the weakening recovery in the US has also contributed to economic uncertainty in the Asia Pacific.
The report, Asia Pacific real GDP growth forecasts: Economic uncertainties continue, says the base case scenario for most Asia Pacific economies is slower growth over 2012.
“Notable exceptions are Australia, Japan, New Zealand, and Thailand. These countries have rebounded after several natural disasters, including floods,” the report says.
Its downside scenario is a slowdown considered worse than a ‘soft landing’ in China. A slowdown in China would create a more pronounced negative impact from US and European weak economic trends, S&P says.
The upside case is based on better than expected improvement in the US and Europe, and China’s growth back to 2011 levels.