Domestic Demand Drivers Now Fuel Growth In EM Asia: JPMorgan

The old export-led model in EM Asia may now be fractured with domestic demand drivers, including financial conditions, playing a more significant role than external demand, notes JPMorgan. Jahangir Aziz and Sin Beng Ong of JPMorgan in their July 2, 2015 research note titled: “EM Asia: Alice doesn’t live here anymore” point out that falling exports to the EM Asia region and other economies led the decline in overall exports. Disappointing two quarters at EM Asia According to the JPMorgan analysts, EM Asia’s GDP growth averaged only 5.2% q/q saar, 1.2%-pts lower than the 6.3% average of the last three…