The Asia Pacific is leading intermediate goods production
Asia Pacific will continue to be the largest and most dynamic producer of intermediate goods worldwide, with China leading growth. The region’s developing countries, including India, Indonesia, Bangladesh and the Philippines are forecast to maintain rapid development as well, as companies seek to reduce production costs. While Japan and South Korea are anticipated to record a flat performance overall, a more positive outlook is expected from these countries’ metal manufacturers
Intermediate goods production in the Asia Pacific is taking the lead in the world’s overall production. Also, this region shows the highest future growth comparing with other regions.
The future is promising for the Asia Pacific due to recovering commodity prices and the growth from developing Asian countries helps to increase intermediate goods production.
China will continue to dominate in intermediate goods in the region
In terms of absolute growth in intermediate goods, China covers approximately 80% of absolute growth in the region. The metal industry in China is the key component of intermediate goods and will remain in the future. Governmental efforts to stimulate exports by using monetary instruments will accelerate the industry as well.
Developed countries will generate profit in metals
South Korea and Japan will gain benefits from the Metal industry the most. The demand will increase not even in-home economies, but also across Asia because of the need of infrastructure and the growing construction sector.
Developing countries show positive signs throughout the region
Developing countries such as Bangladesh, Indonesia or India are becoming more and more attractive for investors, because of the still cheap labor cost and because of the rapidly growing economies. Thus, developing countries are expected to strengthen their role in the region.
Asia trade is chasing western Europe
So far the Asia Pacific is taking the 2nd place both in terms of export and import volumes. However, the region is rapidly getting closer to more developed Western Europe region trade values. A lot of depends on China’s performance, but it is expected that China’s government will put a lot of efforts to increase exports.
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Source : Euromonitor