Focus Asia

25 October 2013

Ever receptive to analyze economic and political situations in order to take advantage of new investment opportunities, Kairos managers are just back from one of their frequent trips to Asia. Together with local managers, they explored and discussed the prospects of the various countries that make up one of the most dynamic economic regions in the world, and first and foremost those to be found in China. Despite widespread fear of a sharp slowdown in the Chinese economy, the new managerial class is expected to find a way to keep growth at around 7.5% this year and around 7% next year. And there’s more. The creation of a 29-square km free trade zone was announced for the area surrounding Shanghai, destined to revolutionize the service sector.

The outline of Japan is no less exciting, in which the new Prime Minister Shinzo Abe is playing a leading role.  In a few short months, his economic policy, referred to as “Abenomics”, has drawn the international community’s focus on Japan, boosting consumer confidence (now at a 15-year peak) and ending the deflation that has affected the country for decades. Regardless, forecasts indicate that until the first quarter of 2014, the Japanese market will substantially depend on the performance of the global economy.

With respect to some of the other major Asian economies, investments in India are at a substantial standstill, and the country will go to the polling booths in 2014. On the other hand, Indonesia is attracting investments from many multinationals, and the Philippines remain the soundest country in the region.


by Moreno Tantangelo – Senior Analyst Kairos Partners