Global Marco Updates

Global Macro Outlook:

• U.S. remains strong with 2% growth, low unemployment, and a soft landing in sight.

• Eurozone’s economy is slowly recovering, led by Spain and Italy.

• China’s domestic demand is weak, exports remain strong, property sector downturn continues.

• Interest Rates: Inflation falling unevenly, rate cuts starting, and rates are expected to descend unsynchronized globally.

• China’s Trade: Little change in global trade share, but a shift in composition with exports rising to emerging markets.

• Supply Chain Fragmentation: Production moving to Vietnam and India, but shifts are incremental.

• FDI: China’s FDI inflows collapsed post-COVID, with increases in Singapore and Hong Kong.

• Conclusion: Despite geopolitical pressures, China’s role in Asian trade remains central with minimal reconfiguration so far.