Recession likely to hit Asia

Expectations of a global recession are increasing as economic indicators continue to deteriorate across the developed world. Asia’s impressive recovery from the last financial crisis has not immunised it to the problems, though specialists are still debating the likely extent of the contagion.

“If the US and Europe go further into recession, there is a good chance Asia will slip into recession as well,” said Jim McCafferty, product manager from the Asia equity research team at Royal Bank of Scotland RBS, in an interview with FinanceAsia.

There are some optimists who suggest China might grow fast enough to offset declines in Europe and...