China and other Asian economies at Risk

China and other Asian economies are saddled with a raft of downside risks, adding to fears they may hurt the South Korean economy along with lingering eurozone debt woes, a report showed Tuesday.

The report by the Korea Center for International Finance (KCIF) said that such risks could further undermine the global economy already buffeted by the impact from the long-standing eurozone debt crisis.

According to the report, China is likely to see its economic growth rate fall by up to 1.5 percentage points this year as declining property prices sap domestic purchasing power.

Provincial governments’ high debts that exceed those of the central government and slowing exports were pointed out as other factors that could deteriorate domestic demand.

The Indian government’s debt against its gross domestic product may rise to 5.5 percent from its goal of 4.6 percent. A weakening Indian rupee may make it more difficult for the emerging economy to repay its foreign debts.

Hong Kong and Singapore, which have stepped up efforts to cool foreign purchases of properties, may see their property markets undergo a correction.

Indonesia, which has far outperformed its Asian peers in terms of its growth rate over the last few years, may see signs of an overheated economy, the report said.

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