In this Asian Focus Video Andrew Robinson, FX Analyst for Saxo Capital Markets in Singapore looks at the state of economic growth generally in Asia and how Southeast Asia is particularly struggling in the region, as shown by recent Singaporean data.

Singapore retail sales data for June was disappointing considering that it covers a period when shops traditionally have sales. Normally these numbers are quite buoyant, says Andrew, adding that sentiment in Singapore is looking increasingly more cautious. There’s no “free-spending” like last year, he says.

Expectations for export data in Singapore due at the end of this week point to a slowing in July. The volatile pharmaceutical sector however could as is often the case give a positive skew to the data. Andrew expects the deterioration in the pace of exports to continue in the coming months as the global economy and particularly China slows down. If China can’t export to the rest of the world then what hope does Southeast Asia have, questions Andrew.

Singapore’s Finance Ministry is increasing its watch on inflation. Even though private property prices are coming down other components like transportation costs (bidding for permits to buy a car) plus food prices remain a concern says Andrew.

On growth, the Japanese economy did relatively better in the second quarter when compared to Germany and the Eurozone. Asia in general continues to see a dramatic slowdown though with China’s performance in the second quarter particularly slow by Chinese standards, says Andrew.

But if China’s economy is slowing that dramatically why haven’t we heard about fresh easing from its central bank? Andrew believes that authorities are concerned inflation could blip up at any moment, given the current trend in food prices. The People’s Bank of China is keeping some powder dry for more drastic deterioration in data, he says.

See more of Andrew's Asian market commentary on TradingFloor.com