China’s Economic Wobbles Cast Long Shadow For Asia

Oct 20, 2021

https://liquidity-provider.com/app/uploads/2021/10/untitled-design-14.png

China's economic woes have cast a pall over Asia, from South Korea to Thailand, as a severe manufacturing slowdown and trade bottlenecks in the world's second-largest economy impact Asia on both the supply and demand sides.

China's GDP slowed in the third quarter, according to figures released this week, with growth reaching its lowest level in a year, hampered by power shortages, supply chain snafus, and a housing market crisis.

The slippage poses additional dangers for China's trading partners in what is shaping up to be a rocky global recovery from the economic slump.

"Yes, growth abroad, particularly in the United States and Europe, seems solid," commented Frederic Neumann, co-head of HSBC's Asian economics research. "However, China has been the region's major engine of growth, and if it sputters, Asian economies will lose a lot of torque."

Changes in China's growth were shown to be significantly more associated with Asia-Pacific countries from South Korea to New Zealand than changes in US or European GDP, according to an HSBC research. According to the bank's experts, for every percentage point of GDP added by China, trading powerhouse South Korea experienced an additional 0.7 percentage point of growth.

According to the study, South Korea was by far the most susceptible to fluctuations in Chinese development, followed by exporting nations Thailand and Taiwan.

Citi analysts have already lowered growth forecasts for economies in the area, including South Korea, Taiwan, Malaysia, Singapore, and Vietnam, due to an expected Chinese slowdown.

According to a Reuters Corporate Survey released last week, the majority of Japanese companies are concerned about the impact of a downturn in China, Japan's main trade partner.

The downturn can be seen throughout China's economy, from retail to manufacturing, which just recorded its lowest production growth since the outbreak began.

China's vehicle sales fell 19.6% year over year in September, according to industry statistics released last week, marking the fifth straight month of declines amid a prolonged worldwide semiconductor shortfall and a power deficit.

Similarly, a regulatory crackdown in China's housing sector has resulted in a significant drop in new building starts, posing a danger to raw material exporters like Australia. Since hitting a high in mid-May, iron ore prices have virtually halved, with demand being harmed by China's steel output restrictions and the property downturn.

Rio Tinto, the world's largest mining company, reduced its 2021 iron ore shipping projection last week, citing tight labor market circumstances in Australia as the main reason, but also warning of regulatory headwinds from China.

'STAGFLATION'

Despite the concerns posed by China, researchers believe Asia will be able to avoid a sharp drop in domestic demand since increased vaccination rates will allow nations in the area to avoid COVID-19 limitations.

Similarly, demand for other products, such as gasoline and food, remains strong in China. As a result, central banks are unlikely to deviate from their broad shift away from crisis-era monetary policies for the time being.

Singapore's monetary policy was tightened last week.

Beyond the larger demand shock, growing supply-side difficulties in China, such as the power shortage, might cause problems for countries in Asia and abroad.

China's manufacturers and exporters have failed to pass on major cost increases resulting from supply constraints in everything from coal to semiconductors.

Analysts warn, however, that the situation around inflation is unstable.

While lower demand may reduce pricing pressures, unresolved supply chain bottlenecks may result in a "stagflation" nightmare, in which rising prices are coupled by sluggish growth.

"I believe it now has the potential to be a double whammy. Because China is one of the region's economic engines, any slowdown will have an impact on demand for regional products and services "OCBC Bank's head of treasury research and strategy, Selena Ling, stated.

"Second, given the continued power shortage, authorities will almost certainly prioritize household (usage) for winter demand above industrial activities. As a result, global supply chain disruptions may be exacerbated."

Subscribe Our Newsletter

JPMorgan Now Expects Nine Straight Fed Rate Increases Until March 2023
JPMorgan Now Expects Nine Straight Fed Rate Increases Until March 2023

The estimate came as consumer prices in the United States rose by the most in four decades in January, raising fears of an overheating economy and a dramatic stock market selloff.

Banks and Finance
Is Bitcoin a Good Investment Today? Let’s See.

Lasha

Is Bitcoin a Good Investment Today? Let’s See.

Bitcoin and other cryptocurrencies were down as regulatory concerns impacted investor enthusiasm. So, is Bitcoin a good investment or not? - you can take into account these considerations.

Crypto
Alexander

How to Spot Cryptocurrency Scams
The cryptocurrency world is still relatively new and uncharted territory. Many of the concepts at play in this new economy can be complex and difficult to understand. This can make it challenging for those who are new to the space to get a grasp on how everything works.

discover
The Power Of Liquidity For Crypto Exchanges

Tamta

The Power Of Liquidity For Crypto Exchanges

As of today, nearly 600 cryptocurrency exchanges stand ready, inviting investors to trade thousands of different cryptocurrencies and gain financial profits.

Liquidity

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    Is IUL a Good Investment Strategy? — A Guide for Beginner Investors

    Is IUL a Good Investment Strategy?

    Alexander

    Are Crypto Wallets Safe? — Tips to Ensure Maximum Protection of Your Digital Assets.

    Tips to Ensure Maximum Protection of Your Digital Assets

    Alexander

    Roth IRA Guide: What It Is and What You Need to Know.

    Roth IRA Guide: What It Is and What You Need to Know

    Alexander

    From Gold to Index Funds and Crypto: Where to Invest in 2023 for Long Term?

    From Gold to Index Funds and Crypto: Where to Invest in 2023

    Alexander

    Understanding Algorithmic Trading: A Guide for Beginners

    Understanding Algorithmic Trading: A Guide

    Alexander

    Stop Vs. Stop-Limit Order: How Do They Differ?

    Stop Vs. Stop-Limit Order: How Do They Differ

    Alexander

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Deborah Middleton

    How MEC Rules Can Impact Your Life Insurance Policy

    How MEC Rules Can Impact Your Life Insurance Policy.

    Deborah Middleton

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Deborah Middleton

    Managing Your Financials The Right Way – A Startup Guide 

    Managing Your Financials The Right Way - A Startup Guide

    Anna

    A Beginner Guide To The Crypto Analysis Tools.

    A Beginner Guide To The Crypto Analysis Tools.

    Anna

    A Brief Introduction to Scalping

    A Brief Introduction to Scalping.

    Anna

    How to Invest in Stocks: A Beginner’s Guide

    How to Invest in Stocks: A Beginner’s Guide

    Anna

    Tips On Finding Crypto Liquidity Providers In 2023

    Tips On Finding Crypto Liquidity Providers In 2023.

    Anna

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Anna

    A Brief and Comprehensive Guide to Spot Trading.

    A Brief and Comprehensive Guide to Spot Trading.

    Anna

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    Tamta

    What Is SWIFT Banking System?

    What Is SWIFT Banking System?

    Tamta

    How Liquidity Providers Drive The Foreign Exchange Market

    How Liquidity Providers Drive The Foreign Exchange Market

    Tamta

    How to Start Investing In Crypto

    How to Start Investing In Crypto

    Tamta

    5 Best Crypto CFD Liquidity Providers 2023

    5 Best Crypto CFD Liquidity Providers 2023.

    Tamta

    The Power Of Liquidity For Crypto Exchanges

    The Power Of Liquidity For Crypto Exchanges

    Tamta

    Institutional Forex Liquidity Explained: Why Do We Need It?

    Institutional Forex Liquidity Explained: Why Do We Need It?

    Tamta

    What Is Return On Investment (ROI), And How Can You Calculate It?

    What Is Return On Investment (ROI), And How Can You Calculate It?
    Latest News - Liquidity Provider: Business & FinTech Media
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site.