According to Pictet Asset Management experts, the reopening of the world’s second largest economy will have a limited impact on global inflation but will support the demand for goods and services in developing countries
Production levels, consumption of goods, the service sector and natural resources, as well as liquidity, make the Chinese fundamental to the global economy. The country’s recovery will in fact have repercussions on the rest of the world in terms of trade, tourism and raw materials. And it’s significant, second Mickael BenhaimHead of Fixed Income Investment Strategy & Solutions e Patrick doubtChief Economist of Pictet Asset Managementthat the other emerging economies, more than the developed world, will benefit the most.
BOOST THE ECONOMIES OF SINGAPORE, THAILAND AND CHILE
“Our analysis” commented the two managers “shows that household excess savings (disposable income minus consumption) have reached 5,000 billion yuan (approximately 700 billion euros), more than double compared to 2014, and equal to 4% of GDP. According to our research, much of this spending will go to other emerging countries, such as Singapore, Thailand and Chile. Furthermore, a recovery in Chinese tourism would provide an additional boost to the economy of the emerging world “…
** This article was written by FinanciaLounge