Too Many Eggs In Asia Basket?

• October 19th, 2012
• Posted by EUEditor

France’s Ambassador to Australia, Stephane Romatet (picture), this week reflected cautions being issued about an economic slow-down in China, saying “don’t put all your eggs in the Asian basket.”

“Let’s not forget the Europe is the major business partner for Australia”, he said; referring to the European Union’s first ranking for investment into Australia, and second ranking after China for trade.

Mr Romatet, 52, who joined the French foreign Ministry in 1993, was speaking in Brisbane  (17.10.12) at a gathering of the Australian Council for Europe and the French Australian Chamber of Commerce and Industry.

In the background, World Bank figures this month foreshadowed   a “more pronounced slow-down” than expected in China, with weak global demand generally affecting economic growth in Asia.

The Associated Press identified decline in business from Europe itself as part one key to that problem:

“The bank cut its growth outlook for Asia on Monday to 7.2 per cent this year, down from its May forecast of 7.6 per cent. It cut its outlook for China, the region’s biggest economy, to 7.7 per cent from May’s 8.2 per cent.

“The bank said demand in key export markets has been hurt by the lacklustre US recovery and recession in Europe.”

See also World Bank, Washington DC, Global Economic Prospects – June 2012, http://web.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDECPROSPECTS/EXTGBLPROSPECTSAPRIL/0,,menuPK:659178~pagePK:64218926~piPK:64218953~theSitePK:659149,00.html, (19.10.12).

Reference

SMH / AP, Sydney, World Bank cuts Asia growth outlook”, 8.10.12.  http://news.smh.com.au/breaking-news-business/world-bank-cuts-asia-growth-outlook-20121008-278kn.html, (19.10.12).

Picture

French embassy Canberra

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