Asia's Economic Growth is Relatively Stable

According to data released by China Logistics and Purchasing Federation on Oct. 8, global manufacturing PMI in September 2019 dropped by 0.6% to 48.7% compared with the previous month, running below 50% for three months. Among them, economic growth in Europe and the Americas slowed down to varying degrees, while economic growth in Asia was relatively stable. In September this year, the PMI of Asian manufacturing industry was 49.8%, up 0.1 percentage points from last month. PMI of manufacturing industry in most Asian countries is relatively stable, and the overall fluctuation is not large, which means that the trend of Asian economy is relatively stable. China's manufacturing PMI was 49.8%, up 0.3 percentage points from August. From the main sub-index point of view, the market demand returns to the expansion range, the production activities of enterprises have increased, the market price has rebounded, the operation of large and medium-sized enterprises has been steadily rising, and the economic operation has been steadily improving. According to relevant people of China Federation of logistics and procurement, the reason for the relatively stable economic growth in Asia is that most Asian countries are developing countries, and the market demand still has a large space for development. In addition, there are more regional economic cooperation among Asian countries and regions, which creates good conditions for stabilizing regional economy. The latest development outlook report issued by the Asian Development Bank predicts that economic growth in the Asia-Pacific region will remain strong this year and next, but the growth rate will slow down somewhat. Compared with the report released in April this year, the growth rate of developing economies in Asia and the Pacific is expected to decrease from 5.7% to 5.4% in 2019 and from 5.6% to 5.5% in 2020. Australian manufacturing PMI showed a significant recovery in September, rising 1.6 percentage points to 54.7% annually, indicating that the growth rate of manufacturing industry continued to accelerate.

The PMI of American manufacturing industry decreased by 0.8 percentage points to 48.6% compared with August, and was below 50% for two consecutive months, creating a new low in the year. From the perspective of major countries, the manufacturing industry in Brazil, Canada and Mexico has rebounded in varying degrees, but the PMI of the largest manufacturing industry in the United States has dropped significantly again, which has led to a significant decline in the PMI of the manufacturing industry in the Americas. Overall, Asian and Australian economic growth rebounded, while manufacturing growth in Europe, the Americas and Africa slowed to varying degrees. Among them, African manufacturing PMI fell 1.3 percentage points to 50.2% from August, but still remained above 50%. PMI in European manufacturing fell by 1.1 percentage point to 47.1% from last month, a new low in the year.

"The global economy is declining obviously in the light of the changes in PMI of manufacturing industries in the world and in various regions. The main macro-control policies adopted by the world's economies are to reduce interest rates and increase fiscal expenditure, and to expand domestic demand has also become the focus of general concern of governments." China Logistics and Purchasing Federation said. In the long run, win-win cooperation is more important than competition in an increasingly complex international economic environment. Integrating resources and coordinating development in the world is the fundamental way for countries to avoid downside risks and achieve sustainable development.