Gradual and uneven
In our view, economic recovery will be gradual and uneven. It’s been hard to pinpoint specific reasons, but one witnesses buoyancy in some pockets and continued sluggishness in some others. A case in point is divergent growth trends between relatively good growth in scooters versus sluggishness in motorcycles. While motorcycle sales have been flattish compared to five years ago, scooter sales are up more than 2.5 times.1 However, the fact remains that despite different economic indicators throwing confusing signals, the economy is undoubtedly bottoming out. The pace of recovery will likely be slower as the tailwind of strong global growth that existed in the past is missing this time.
