Asia’s economies face sluggish growth and high macro risks, weakened by the influx of easy money and China’s slowing growth, according to Nomura.
“Asia overall has become addicted to easy money, and this has weakened economic fundamentals,” said Rob Subbaraman, chief economist for Asia ex-Japan at Nomura, in a note. “As a consequence – and quite pervasively across the region – there has been a rapid build-up of private domestic credit, frothy property markets, slowing productivity growth and a sizable shrinkage in current account surpluses (turning to deficits in India, Indonesia and Hong Kong).
In addition, the quantitative-easing fueled capital inflows have reduced the market discipline to pursue structural reforms, he added.
via CNBC 
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