INDUSTRY NEWS
Asia and Pacific economic outlook
According to the International Monetary Fund ( IMF ), Asia ’ s growth is expected to slow down in 2022 and 2023 . This comes amid headwinds from global financial tightening , the war in Ukraine and the sharp and uncharacteristic slowdown in the Chinese economy . The IMF recently released its regional economic outlook report for Asia and the Pacific .
“ Asia ’ s policymakers face worsening trade-offs but should remain steadfast on monetary tightening to tame rising inflation , fiscal consolidation to stabilise debt and pre-emptively address emerging stability risks through the full use of its policy toolkit . Given its strong trade and supply-chain links , Asia has a lot to lose in the event of sharp fragmentation scenarios where the world divides into separate trading blocs ,” it commented .
“ Asia ’ s strong economic rebound early this year is losing momentum , with a weaker-thanexpected second quarter . We have cut growth forecasts for Asia and the Pacific to four percent this year and 4.3 per cent next year ( down by 0.9 and 0.8 percentage points , respectively , compared to the April World Economic Outlook ) which are well below the 5.5 per cent average over the last two decades . Despite this , Asia remains a relative bright spot in an increasingly dimming global economy ,” noted Krishna Srinivasan , Director , Asia and Pacific Department , IMF .
The IMF has marked down Chinese growth for 2022 to 3.2 per cent , its second-lowest level since 1977 , reflecting the impact of the zero-COVID lockdowns on mobility and the crisis in the real-estate sector . This slowdown is estimated to have important spillovers to the rest of Asia through trade and financial links .
While inflation rose more modestly in Asia during 2021 than it did in other regions , the sharp bout of volatility in global commodity markets after Russia ’ s invasion of Ukraine in February put additional pressure on Asia ’ s headline inflation in the first half of 2022 . This increase has been driven by rising food and fuel prices — particularly in Asian emerging market and developing economies — but also reflects higher core inflation as the region recovers .
Mr . Srinivasan stressed several priorities for policymakers , including further tightening of monetary policy to ensure that inflation returns to target and that inflation expectations remain well anchored . Fiscal consolidation was also recommended to stabilise public debt and support the monetary policy stance .
“ The challenging conjuncture is aggravating the medium-term economic scars opened by the pandemic . The pandemic is expected to provoke a long-term fall in output with respect to pre-pandemic projections , and this scarring is expected to be worst in Asia and Pacific . Much of the shortfall in growth in Asia relative to other regions can be explained by lower
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levels of investment following the pandemic . These output losses are also particularly severe in tourismdependent economies and those with high debt ,” said the IMF .
The prospect of greater geo-economic fragmentation also poses a significant risk to the region . Even in the absence of actual restrictions , greater trade policy uncertainty can have adverse macroeconomic consequences in the short term .
“ The report considers an illustrative sharp fragmentation scenario in which the world divides into separate trading blocs , and shows it would carry large , permanent output losses . These could be especially severe for Asia , given its significant role in global manufacturing and trade . Just the losses due to lower productivity could take up to 3.3 percentage points off regional output . Total losses are likely to be much larger due to the dent on investment as firms lose access to export markets . We therefore stress the need for international cooperation to roll back trade restrictions , reduce policy uncertainty and promote open and stable trade – both regionally and globally – to avoid the most harmful fragmentation scenarios , and to ensure that trade continues to act as an engine of growth ,” concluded the IMF . n
FABTECH in focus
FABTECH , North America ’ s largest metalforming , fabricating , welding and finishing event , confirmed that 150 companies made their debut as exhibitors at the 2022 event . With nearly 1,200 exhibitors and 400 new products on display , the global fabrication community met suppliers , witnessed new innovations and found tools to improve productivity and increase profits . Almost 30,000 visitors from 70 countries attended FABTECH 2022 , which ran from 8-10 November 2022 at the Georgia World Congress Centre in Atlanta , USA .
“ Each year , exhibiting companies display the latest manufacturing equipment and advanced solutions — up close and in action — in over 40 different product categories ,” said Mark Hoper , FMA senior vice president of media & expositions , FABTECH .
FABTECH ’ s expansive 610,000 + square foot show floor covered four exhibit halls and featured leading original equipment manufacturers — including Platinum Sponsors AMADA America , TRUMPF and MC Machinery Systems Inc ./ Mitsubishi Laser — demonstrating their products , processes and automated manufacturing solutions .
With nearly 400 new product introductions , FABTECH attendees explored new technology and emerging trends in fabricating ; stamping ; tube and pipe ; welding ; finishing ; additive manufacturing ; and robotics and industrial automation . This year , its welding pavilion featured approximately 350 companies , including Lincoln Electric ; IPG Photonics ; FANUC America Corp and Miller Electric Mfg LLC .
The event also offered numerous educational conferences and special events designed to appeal to highly diverse audiences . FABTECH 2022 included over 150 carefully curated educational sessions and networking opportunities with peers , industry leaders , buyers and manufacturers .
FABTECH ’ s five event partners include the American Welding Society ; the Chemical Coaters Association International ; the Fabricators & Manufacturers Association International ; the Precision Metalforming Association and SME .
FABTECH 2023 will take place from 11-14 September 2023 in Chicago , USA . n