Eurozone crisis to drag down APac growth in 2013 — Moody's Analytics

The continuing crisis in the Eurozone is expected to bring down the economic growth of countries in the Asia-Pacific region in 2013, Moody's Analytics said in a report released Tuesday. The Asia-Pacific economies, including the Philippines, are projected to grow below their maximum potential as unfavorable economic conditions in the West will decrease export revenues and foreign direct investments. “The biggest risk to Asia comes from Europe, where the sovereign debt crisis remains unresolved. European policymakers are likely to muddle through, but a severe downside event remains a distinct possibility, particularly with elections coming in key markets,” Moody’s Analytics said in the report. Nevertheless, the growth rates in the Asia-Pacific will exceed those of the advanced economies, it added. The Philippines' GDP grew a stronger-than-expected 7.1 percent in the third quarter, second only to China's 7.4 percent. Moody's Analytics expects the Philippines' growth in 2013 to slow to around 5 percent next year. The report also said that strong domestic demand in the Asia-Pacific countries will help cushion the adverse effects of external crises. Moody's Analytics is the unit of Moody's Corporation that provides credit analysis and risk management. The credity rating agency Moody's Investor Service is another unit of the corporation. — BM, GMA News