Australia: Monetary easing needs fiscal stimulus on its side>
The Reserve Bank of Australia (RBA, the central bank) cut its key policy interest rate by 25bp to an all-time low of 1.25% in early June and indicated in the minutes (released this week) that a further cut is on the horizon.
Thailand: Losing momentum
Q1 real GDP growth decelerated to +2.8% y/y (+3.6% in Q4) as sluggish external demand hit exports (-4.9% y/y).
Emerging Markets: Under pressure
The economic cycle of Emerging Markets (EM) is currently deteriorating fast, indicated by our aggregate EM manufacturing PMI falling to 49.6 points in May, back below 50 (recession area) for the first time since August 2016.
Indonesia: Growth set to remain robust despite external headwinds
Q1 real GDP growth edged down to +5.1% y/y from +5.2% in Q4 2018.
India: Landslide victory for PM Modi
PM Narendra Modi was overwhelmingly re-elected for a second term.