Landscape Evolving For Asian Giants


BMI View : We have slightly revised down our 2014 forecasts for electricity generation in Asia this quarter due to deterioration in the economic outlook for several countries in the region. Our forecasts for Japan experienced the most significant revisions due primarily to a slowing economy and a new energy plan. We also see growing upside risks to our power forecasts for India, while our long-term outlook for the broader Asian power sector remains unchanged and positive.

The near-term economic outlook for Japan and China continues to deteriorate, which is a trend we had highlighted and incorporated in our previous analysis of the Asian power sector (see 'Slowdown In Major Asian Economies Hurts Regional Power Outlook', April 1). While we have maintained our forecasts for China this quarter, we have moderated our forecasts for Japan due to a worse-than-expected deterioration in its economy (see 'China, Japan: Further Signs Of Weakening Growth', May 6).

Japan: Economic Risks At The Fore

Disappointing Wage Growth
Japan - Real Wage Growth, % chg y-o-y 6mma

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Related sectors of this article: Utilities - Power, Power, Gas - Power, Coal - Power, Hydropower - Power, Regulatory - Power