Even prior to the COVID-19 pandemic, growth and inflation were broadly subdued. Growth stood below measures of potential output in countries such as Brazil, Mexico and South Africa.
In its 2021 edition, the report focuses on topics such as the growth of the digital economy in sales, the adoption of greener and healthier lifestyles and the increase in discretionary purchases in markets such as China, India, Indonesia, Thailand, Turkey, Brazil and Mexico.
The study was carried out by NTree International Ltd on behalf of investment manager China Post Global, which promotes a family of innovative Exchange-Traded Funds (ETFs).
In our view, China’s policymakers are likely to manage the economy with these ox-like characteristics; we could see more measured and targeted structural policies rather than a blanket-like aggregate approach.