An economic slowdown in Asia is becoming a growing concern, representing a major shift from this time last year, new research has shown.
According to a survey by the DTCC, 22% of respondents considered an Asian economic slowdown to be the biggest systemic risks to the broader economy. The same survey last year showed just 1% believing it to be a top systemic
“We’re not surprised to see an increase in concerns about the global economy, especially in Asia where we have seen the economy slow down in China sharply in recent years compared to three decades of mostly double digit growth,” said Michael Leibrock, managing director and chief systemic risk officer at DTCC.
Slowdown in the US was ranked as a top five concern for 37% of respondents while a downturn in Europe was cited by 24% of participants as a top five concern.
In other findings, cyber risk remained the number one overall threat with 25% considering it the single biggest threat compared to 46% in 2015. One respondent said, “cyber is never going to go away, but it seems the major players are investing heavily in prevention.”
In January, new EU-wide cyber security measures received approval in the European Parliament.
“Interestingly, while cyber risk remains very much top of mind, concerns have decreased over the last year, raising a red flag that firms need to remain vigilant in the face of this persistent threat,” added Leibrock.