Why growth in China is unlikely to slow too far and why it needs to save less and spend more

Why growth in China is unlikely to slow too far and why it needs to save less and spend more   Key points China’s economy is slowing but not collapsing as the services sector holds up. A further slowing is likely in the short term, but policy stimulus is likely to see growth improve in the second half, giving 2019 growth of 6.2%.   Concerns about China’s rapid debt growth are overstated given it reflects …

Market correction or market downturn?

Market correction or market downturn? It’s understandable that the recent sharp sell-off on financial markets has left investors feeling particularly nervous. The main concern has been the US Federal Reserve’s shift in monetary policy from low rates and printing money to rising rates and the withdrawal of that printing policy. But there’s also a lengthy worry list of issues that we hear continuously: the US trade conflict with China, issues around the leadership of President …

The Australian economy – five reasons growth will continue but unlikely to be enough to justify rate

The Australian economy – five reasons growth will continue but unlikely to be enough to justify rate Key points The Australian economy grew 2.4% through 2017, good but well below potential given high population growth. There is good reason to expect growth to continue and pick up a bit: the drag from falling mining investment is nearly over, non-mining investment is turning up, public investment is strong, trade should add to growth and profits are …