Business confidence in Asia grew in the January-March period to the maximum in the past seven years, a new poll by Thomson Reuters/INSEAD revealed, with a recent leap of the Chinese economy allaying worries of emerging trade barriers.
The Business Sentiment Index for Asia, reflecting prospects of 67 companies for half a year, added one point, reaching 79 for the first three months of the year in comparison to the three preceding months. A figure over 50 stands for an upbeat forecast.
This is not an extremely high jump but for the future it is a positive signal, Antonio Fatas of INSEAD global business school said. Among the countries that experienced a great rise in mood are Thailand, the Philippines and Malaysia, meaning that lots of Asian countries keep taking advantage of fast global growth.
Thus China’s exports have grown greatly, adding 45% last month, attaining the best results in three years. China has gotten rid of the fear of a crisis that sprung up in 2016 and this fosters confidence. Imbalances are still in place but nothing suggests there is a probability of a crisis in the short run, Antonio Fatas also said.