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China’s growth is softening and global uncertainty does not help
War, uncertainty and weak domestic demand cloud China’s growth outlook, with implications for Singapore.
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China’s growth outlook faces additional downside risks if the war in the Middle-East persists.
PHOTO: REUTERS
Arup Raha
The global financial markets are almost always chaotic, but in recent days, they have outdone themselves. They have been reacting to the war between the US and Israel forces and Iran, which experts believe could last for a prolonged period, perhaps even months, despite US President Donald Trump’s repeated claim that “it’s going to be finished pretty quickly”.
The market reaction to the war has been severe. Oil prices were around US$89 at the time of writing, up from US$72 on Feb 28 when the war started. Equity markets have sold off across most regions, the yield on US 10-year Treasury bonds has risen by around 30 basis points, and the US dollar has strengthened as one would expect during times of heightened global risk.
