top of page

China’s struggling economy: experts opinions

two businessmen walking through an open hallway

The property market in China is declining, deflation looms over the nation, and the investment market has experienced turbulent moments this year. To make matters worse, January's numbers show that manufacturing has contracted for the fourth consecutive month. All of this contributes to skepticism towards the world's second-richest nation.

 

Eswar Prasad, an official at the International Monetary Fund, commented that predictions of China's GDP surpassing that of the US are declining.

 

However, China does not admit to its economic decline, and moreover, its leader stated that the country's economy is becoming more resilient and dynamic. This optimism has led to some improvement in the luxury sector and manufacturing activity, creating bullish rumors among investors.

 

On the other hand, Paul Krugman is one of the voices with bearish tones regarding China, stating that the country is stagnant and disappointing.

 

From poor leadership to high youth unemployment, China faces challenges on all fronts.

 

The Property Crisis. Housing demand is estimated to decline by 50% over the next decade, according to the World Economic Forum in Davos. And it is expected to worsen, according to investor Kyle Bass, who said that the country's heavily indebted property market has triggered a wave of defaults among public developers.

 

Shimmers of Hope. The Institute of International Finance, on the contrary, says that China has the political capacity to overcome the economic situation and achieve economic growth of 5%.

 

Marko Papic, strategist and partner at Clocktower Group, predicts that the stock market will jump by 10% in the coming days. Looking ahead, China has hurdles to overcome. However, it remains to be seen if it has the firepower to do so.

 

Source: cnbc



Comments


CONTACT US

Main Office

252 Ponce de León Ave.

City Towers Suite 1403
San Juan, PR 00918

EMAIL

info@lyonbern.com

PHONE

787-395-7325

  • Instagram
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube

Disclosure:  Lyon Bern, LLC is a Registered Investment Adviser and is in the business of consulting and advising its clients in wealth and asset management. Each client's diversification between Lyon Bern's portfolios will be made individually and based on the client's Investment Policy Statement. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product referred to directly or indirectly in this document will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Lyon Bern, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional investment advisor. A copy of our current written investment advisory agreement discussing our advisory services and fees is available for review upon request.

bottom of page