That said, the relief will be felt all around with interest rates likely to have climbed close to their peak after a “relentless rise” last year.
While the Year of the Dragon should bring some relief to the wobbly economic growth and topsy-turvy markets that marked the Year of the Rabbit, 2024 may amount to a “plodding pick-up”, says Frederic Neumann, HSBC’s chief Asia economist and co-head of the global research team in Asia.
The Year of the Dragon is likely to see trades remaining “hampered” by subdued consumer demand in key markets despite recent green shoots of growth. At the same time, cooling inflation should bring about extensive relief although rate cuts may arrive only at a measured pace, he adds.
