Domestic demand takes centre stage

WE see three themes impacting the 2019 outlook in Asia-ex-Japan, and we expect GDP growth to moderate to 6 per cent year on year from 6.2 per cent in 2018, staying within a tight range.

Overall, the combination of easing external funding conditions, and moderating global growth and idiosyncratic factors, such as elections and policy support, means that domestic demand stories will likely take centre stage, and we are most positive on India and Indonesia.

Theme 1: External funding pressure to ease