Asian countries have emerged from the pandemic without the same economic problems plaguing the West, according to Robert Horrocks, chief investment officer and portfolio manager at Matthews Asia.
"Core inflation rates may have increased dramatically in the US, Europe and Latin America, but in much of Asia they have barely budged," he said. The two inciters of inflation in the West, Horrocks explained, had been large fiscal stimulus packages and supply chain issues. He stated that supply chain problems "really only affect the consumer countries" and that "China did not have a big fiscal stimulus at all, and monetary policy has been fairly tight". Looking to headwinds, Horrocks stated the "biggest risk" was whether China "continues to abide by the economic sanctions the West has...
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