Capital expenditure key driver

capex returning to asian markets after six years of weak spending and negligible capacity growth

Capital expenditure, rather than domestic consumption, will be the major factor driving Asian economic growth, noted UBS Securities analyst Phil Wyatt. Speaking at the recent Investment Week Masterclass in Hong Kong, the Asia analyst said China, along with India, survived the regional downturn in better shape than other economies because of the size of domestic demand. Outlining the historic context for the current recovery, Wyatt noted that in the late 1980s and early 1990s, the Asian region had a strong boom in domestic property and infrastructure spending, which pushed construction gro...