Indian economy showing early signs of reversal

The two key determinants of an economy's growth trend are demographics and productivity. While demographic and productivity trends in Asia were supportive of growth until 2007, they have turned less supportive in recent years. Many countries in the region (China, Hong Kong, Korea, Singapore and Taiwan) are now facing a demographic challenge due to a sharp deceleration in the growth of the working age population, thereby forming a headwind to growth. Moreover, post-credit crisis growth in the AXJ (Asia ex-Japan) region has largely lacked the productive dynamic as domestic demand has been pushed higher via loose monetary and fiscal policies rather than through structural reforms. 

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