Industrial production in Asia weakens due to falling demand from West amid economic crisis
Industrial output in Asia fell sharply in September, being influenced by slowing demand and worsening economic conditions in China and the West. According to Reuters, this market situation diminishes economic recovery prospects for the region.
Manufacturing activity in September compared to August declined in Taiwan and Malaysia, as well as in Japan, India and Vietnam. According to experts, this is due to rising prices for raw materials.
“We’re seeing economic conditions deteriorate in China, the United States and Europe. That’s definitely weighing on Asian manufacturing activity,” said Toru Nishihama, chief economist at the Dai-ichi Life Research Institute in Tokyo, adding that Asia is now suffering from slumping global demand.
The latest available data cloud the outlook for the region’s recovery from the coronavirus pandemic. Reuters notes that the rapid rise in inflation forced the central banks of the US and Europe to raise interest rates, and this in turn increased fears about a sharp decline in global demand for Asian goods.
Moreover, the information showed that strict restrictions due to COVID-19 also significantly disrupted production and reduced sales in China. Many analysts believe that even if China relaxes its control over the coronavirus, the country’s economy will grow by only 3 percent. This will be the slowest growth in China since 1976, not counting 2020.
Observers emphasise that the global economic slowdown is also clouding the outlook for high-growth industries. Top electric car maker Tesla Inc recently announced lower-than-expected electric vehicle deliveries in the third quarter.