Containers being loaded at a dock in Haikou, capital city of Hainan province. [Photo/China Daily]
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Containers being loaded at a dock in Haikou, capital city of Hainan province. [Photo/China Daily] |
China's economy is weakening but it will keep expand at a faster rate compared to other Asian countries while the yuan will remain a safe heaven for investors, Crédit Agricole CIB said in a report published Tuesday.
Asia is experiencing a clear slowdown as a result of the recession in the eurozone and a significant weakening of growth in China, the investment banking division of Crédit Agricole S.A. said. The French lender said it expects GDP growth in Asia to fall from 7.3 percent last year to 6.6 percent in 2012.
The region would perform even worse without China, even though the world's second biggest economy is also loosing steam. Excluding China, Asia's economy would only pick up 5.3 percent this year, it said. India, Malaysia, Vietnam and Thailand may find it challenging to meet GDP growth targets, the lender said.
The downside risks of the Asian foreign exchange market will prevail until China successfully stimulates its economy, or a solution to the eurozone fiscal crisis is in sight. Meanwhile, the yuan will remain a safe heaven, and yuan-denominated bond yields will pick-up, the lender said.