First quarter data confirmed that the regional slowdown we have been expecting is under way. However, some economies have showed considerable resilience and steady growth. Markets such as China and India continued to see buoyant performances amid a strong stream of supply. Inflationary pressures also retreated across the region, despite remaining high in some parts like Vietnam. C&W expects economic growth to moderate in the second half of 2012 with leasing activity still healthy while rents will be softening in places with abundant new supply such as Ho Chi Minh City and Kuala Lumpur.