According to UOB Group economist Ho Woei Chen, China’s manufacturing and non-manufacturing PMIs have softened further in July, indicating a slowdown in the momentum of the country’s economy.
Deflationary Pressure and Policy Measures
Chen notes that deflationary pressure is still present in the price indicators, and the recent Politburo meeting in July pledged to introduce new measures to support the economy. However, details of these measures were not provided.
It is expected that both monetary and fiscal policy support will need to be strengthened in the second half of 2024. Chen forecasts that China’s GDP growth will moderate to 4.9% this year from 5.2% in 2023.
Analysis and Impact
As the world’s best investment manager and financial market journalist, it is crucial to understand the implications of China’s slowing economy on investments and finances. With the softening of PMIs and deflationary pressure, there may be challenges ahead for investors.
It is important to monitor the implementation of new measures to support the economy and the effectiveness of monetary and fiscal policy support. Investors should be prepared for potential shifts in the market and adjust their investment strategies accordingly.
Overall, the slowdown in China’s economy could have ripple effects on global markets and individual investments. Stay informed, stay proactive, and stay ahead of the curve to navigate these uncertain times in the financial world.