Global growth is expected to slow in the coming months, but Asian economies could hold up reasonably well, thanks to several “mitigating factors,” according to the chief executive of Southeast Asia’s largest bank.
“The overall macro-economy will be a tad bit slower, but I do think that there are some mitigating factors: Monetary policies are getting looser, I think there are some fiscal stimulus coming down the pipe,” Piyush Gupta, CEO of Singapore’s DBS Group Holdings, told CNBC’s “Capital Connection” on Monday.
Gupta noted that Asia is still projected to grow at 5.5 percent to 6 percent this year despite the overall softer global environment. Several central banks in Asia — including those in China, India and Australia — have lowered interest rates or indicated the intention to do so in the coming months in an attempt to shore up economic growth, the CEO added.
In addition, the U.S. Federal Reserve holding back from raising interest rates further is good news for Asia, said Steve Cochrane, chief Asia Pacific economist at Moody’s Analytics.
“It means that there’s a little less pressure on foreign exchange,” he told CNBC’s “Squawk Box” on Monday.