South Korea, for example, now exports more to the mainland than to the U.S. and the euro zone combined.
Imports into China are also now being consumed locally instead of being re-exported, says Neumann, highlighting growing domestic demand in the country.
Falling Oil Prices Another Boost
Besides Chinese demand, another positive for Asian economies is falling oil prices, which will increase purchasing power and lead to an increase in consumer spending across the region, says Neumann.
“The drop-off in oil will largely benefit the Southeast Asian economies, like the Philippines and Indonesia, which are domestically driven,” he said.
Lower oil prices also give governments in India and Indonesia more room to cut subsidies and support growth via fiscal stimulus, Neumann said.
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