Economist, Centennial Asia Advisors

Jason Tan

Economist

Centennial Asia Advisors

At Centennial Asia Advisors, we tell it like it is. We have no vested interests, no need for a China wall, and no reason to skew our outlook any other way. With over 30 years experience covering Asia’s political economy, you can be sure our conclusions and analyses are based on the unadulterated facts. Through years of fine-tuning our research methodologies, we deliver a quality of macroeconomic analysis few other houses can match.

Centennial Asia Advisors is an independent research and advisory firm that works with governments, multilateral institutions, financial firms and leading MNCs.

Economic Policy and Strategic Advisors

Macroeconomics

<ul><li>The outbreak of MERS has intensified an economic downturn in Korea that has already been evident in weak consumption and exports. Now, tourism has also fallen and the gloomy outlook has caused the government to slash the growth forecast for 2015.</li><li>The slowdown in China and the weak recovery in the Eurozone have knocked exports which have contracted for five consecutive months and by double-digits in May 2015. The relative strength of the won has also done export competitiveness no favours, either.</li><li>Policy makers have reacted swiftly. Monetary policy has been eased four times in less than a year by the central bank while the government has announced a massive fiscal stimulus.</li><li>However, the downside risks are aplenty as the turbulence over Greece shows. High levels of household debt constrain further room for monetary stimulus. The impending Fed hike may cause financial volatility to spike while the lack of a strong political consensus on key issues may also compromise economic confidence.</li></ul>

The outbreak of MERS has intensified an economic downturn in Korea that has already been evident in weak consumption and exports. Now, tourism has also fallen and the gloomy outlook has caused the government to slash the growth forecast for 2015.The slowdown in China and the weak recovery in the Eurozone have knocked exports which have contracted for five consecutive months and by double-digits in May 2015. The relative strength of the won has also done export competitiveness no favours, either.Policy makers have reacted swiftly. Monetary policy has been eased four times in less than a year by the central bank while the government has announced a massive fiscal stimulus.However, the downside risks are aplenty as the turbulence over Greece shows. High levels of household debt constrain further room for monetary stimulus. The impending Fed hike may cause financial volatility to spike while the lack of a strong political consensus on key issues may also compromise economic confidence.

Fragile Korean economy made weaker by MERS outbreak