Hopes of growth from Asia overblown: Stephen Roach
June 30th, 2009
Stephen Roach, Chairman-Asia, Morgan Stanley, said demand in the US is subdued at lower levels, so a recovery call will be tough. “The recovery would be better than L-shaped but not V-shaped.”
He feels lower demand from the developed world will impact Asia. “The hopes of growth from Asia are overblown currently. It has significantly increased its reliance on external demand. We think the developed world remains in a rare synchronised recession. So, the second half of 2009 and 2010 is likely to be a challenge for Asia.”
On commodities, Roach said the deflation call for commodity prices is largely behind us. “We don’t see a pronounced downturn in commodity prices.”