Asia to drive global growth in 2018: Deloitte

2018-03-13 06:05:45 GMT2018-03-13 14:05:45(Beijing Time) Xinhua English

SYDNEY, March 13 (Xinhua) -- Improving domestic conditions alongwith a number of large scale infrastructure initiatives will seeAsia drive global growth in 2018, Deloitte Access Economics inAustralia said in a new report on Tuesday.

While the recently imposed tariffs on steel and aluminium pose anumber of possible risks to the global economy, the firm's leadpartner Stephen Smith warned that people should not be "mesmerised"by Washington's controversial policy.

"Global financial conditions remain accommodative and capitalflows in emerging and developing economies have returned," hesaid.

"The global economy seems set for a new investment cycle, whichwill bolster the rebound."

Central to the success of the region will be the performance ofChina.

According to the report, countries like Australia could facesignificant challenges "if exposed to downside risks fromChina."

"Importantly, however, our baseline scenario is for China tocontinue its impressive performance," Smith said.

Although emerging consumer markets across Asia are predicted tomake up a large part of the world's growth, a number ofinfrastructure projects throughout the region will play a massiverole.

Deloitte China economist Xu Sitao said China's Belt and RoadInitiative, which aims to improve land and sea trading routesacross the world, will be a vital in boosting productivity inAsia.

"Even though it's in its early stages, a number ofinfrastructure deals have already been signed under theinitiative," Xu said.

"It will create jobs and business opportunities across theregion in the short term, as well as improve the movement of goodsacross economies and support business productivity in the longterm." Enditem