Natixis Chief APAC Economist Alicia Garcia Herrero on China

The video discusses the current state of the Chinese economy, highlighting its softening growth and the impact of energy issues. It explores the energy crisis affecting China and India, focusing on coal dependency and supply constraints. The discussion shifts to monetary policy, examining the PBOC's strategies and the implications of RMB currency management. Finally, it analyzes inflation and demand dynamics in Asia, considering the potential for inflationary pressures and the role of demand in shaping economic outcomes.

What is the expected growth rate for the Chinese economy in the third quarter as mentioned in the video?

• 7.8%

• 6.2%

• 5.5%

• 4.9%

What is one of the main reasons for the current global energy crisis?

• Excessive coal reserves

• Overproduction of renewable energy

• High investment in brown energy

• Supply crunch due to reduced investment in brown energy

Why is China hesitant to cut interest rates according to the video?

• To control inflation

• To increase domestic demand

• To avoid a negative first quarter in 2022

• To boost export competitiveness

What is a potential consequence of appreciating the RMB as discussed in the video?

• Improved export competitiveness

• Increased domestic demand

• Higher inflation

• Competitiveness problem due to reduced subsidies

What is the main concern for Asia regarding rising energy prices?

• Rising coal prices

• Decreasing shipping costs

• Increasing demand

• Exporting inflation

How does the video describe the current state of shipping costs?

• Increasing due to supply chain issues

• Plummeting due to lack of demand from China

• Stable with no significant changes

• Rising due to high demand

What is the expected impact of energy prices on inflation in Asia according to the video?

• Immediate inflationary pressure

• Deflationary trends

• No inflationary pressure due to demand issues

• Long-term inflationary pressure