Asia might be facing 3 major economic risks this year, and it is coming from a reliable source of experts, so we are inclined to believe it. Carlos Casanova is the one who is talking about all this. He is a senior economist in Asia. Through years of experience, it seems that he has a point in the facts that he has been making about the coming year.
“We have rising omicron cases. We have priced in slower growth in China at around 5%. And now, the Fed meeting minutes suggest that the pace of the tapering will be faster-than-expected,” he told CNBC “Squawk Box Asia”.
Rate compression is going to be a thing that is going to cause the market a huge effect. Well, at this point, the matter of finance seems to be in crucial condition but we are not really sure that where it is all heading at. What he says seems to be plausible, but in the case of finance and the market, it seems not so sure that the market will follow the predictions that are being made.
“What we are fighting to avoid is a situation, whereby, they are more proactive in reducing their balance sheet at the same time as they’re implementing three rate hikes in 2022,” he had said in the statement that he made on the news.
We are not so sure about what the future holds but we hope that not too much damage is done. The situation of the world is bad enough already. We do not need any added problems right now.