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Nomura: Surge of Cheap CN Goods Could Disrupt Asian Economies
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Nomura economist Rob Subbaraman warned that a sudden influx of cheap Chinese goods into emerging economies, particularly in Asia, could be very disruptive, prompting tremendous trade imbalances, intensified deflation, and increased fiscal spending.

Analyzing data from 45 countries, Subbaraman found that economies with the largest increases in Chinese imports typically experience the most severe slowdowns in local manufacturing. In parallel, there is a marked negative correlation between China’s import share and producer price inflation.

Related NewsCaixin Manufacturing PMI for Apr in China is 50.4, lower than the previous value of 51.2. The forecast was 49.8.

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