Asian consumption is cooling, the global economy is catching a cold

Asian consumption is cooling, the global economy is catching a cold Whenever exports to the United States and Europe slow down, the strong consumption power of Asian countries has always been able to support continued economic growth, but...

Asian consumption is cooling, the global economy is catching a cold Whenever exports to the United States and Europe slow down, the strong consumption power of Asian countries has always supported continued economic growth. However, recent signs show that Asian consumer spending is showing signs of cooling, which is bad news for the few remaining bright spots in the global economy. South Koreans are buying fewer cars, and Chinese consumers are cutting back on spending on new clothes. There are not as many shoppers queuing outside the Louis Vuitton boutique in Hong Kong as before. Betting on baccarat tables in casinos in Macau and Singapore has grown more slowly than in the past three years. Some economists say growth in industries that had been outstanding performers in many Asian countries has begun to slow in recent months. Many stores and business owners say they are already feeling the effects of consumers becoming more cautious. Shawkat Imran, a Hong Kong chef who invests in several Italian restaurants, said: "Consumption power is not what it used to be. Sometimes customers share a meal, and customers who used to order wine now only need boiling water." Imran said that the number of customers has not decreased, but they share dishes, and each bill is reduced by about 20%. The shift in consumer confidence has been less pronounced and there are no signs yet of the sharp decline in spending seen in Spain and Greece, but in many Asian economies spending growth has receded from high water levels. If the European and American economies continue to decline and Asia's trade prospects worsen, Asian consumers will be forced to cut spending even more. In China, Asia's largest economy, retail sales increased by 13% in July compared with the same period last year, which is still quite strong, but much slower than the more than 20% in the past few years. To boost sales, the Chinese government has introduced tax incentives to encourage the purchase of home appliances. In South Korea, which relies on export trade, consumption has stagnated, department store sales and automobile sales have shrunk, and housing prices have begun to fall. The government has launched a series of measures to support consumption, including easier housing loan conditions, and is deliberating a large-scale economic stimulus plan.