Global growth will slow down to +2.4% in 2016, its lowest level since the great recession
Hong Kong, Taiwan and Singapore are caught in an economic typhoon. Activity growth will be hindered by lower external demand, especially from China and tighter financial conditions. All three economies will grow at a rate under +2% in 2016-17, far below their long-term average.
In 2016, insolvencies will increase by +15% in both Singapore and Hong Kong, and by +17% in Taiwan. Vulnerable sectors include basic materials, retail, electronics, and housing and real estate.
In the long run, these hubs will have to diversify and reinvent its business model.