NIEs’ 3.5% GDP Growth Forecast Too Optimistic: Capital Econ

Despite IMF’s or the consensus forecast that Newly Industrialized Economies’ (NIEs) GDP would grow around 3 -3.5% over the next five years, analysts at Capital Economics believe that the forecast almost “certainly looks too optimistic” and the NIEs will more realistically grow only around 2-2.5%. Gareth Leather & Andrew Wishart said in their March 8 research note titled “Life in the slow lane for Asia’s Tiger economies” that they believe a sharp decline in the working age populations of the NIEs looks inevitable. NIEs to grapple with a plethora of unfavorable demographic changes Leather and his colleague believe a combination of unfavorable…