East Asian countries are poised to report gross domestic product data that may mark the bottom of the region’s slowdown, as signs of a recovery in China and the U.S. herald a revival in demand for exports.
Central banks in Southeast Asia may be forced to abandon this year’s monetary easing and raise interest rates before their north Asian peers in 2013, as rising inflation risks overshadow the current economic gloom.
Malaysian Prime Minister Najib Razak’s efforts to build support ahead of national elections may spur more handouts to the poor and bonuses for civil servants, limiting progress in reducing the 2013 budget deficit.
Bank Indonesia is seeking to increase yields on its short-term securities to absorb liquidity from the financial system and ease inflation pressures stemming from credit growth and a government plan to raise fuel prices.
Fitch Ratings said Greece will be considered a “restricted default” after the 159 billion-euro ($229 billion) European bailout unveiled yesterday, given the plan includes getting bondholders to assume part of the cost.