The heat Is on

That bear running around China is causing concern – the recent GDP numbers are on par with 2009.

The situation with lower commodity prices across the board has a lot of analysts a touch nervous.

I have commented on BRIC’s in a recent article – but now HSBC has ‘diagnosed’ all countries with links to China.

image

Chart courtesy of Bloomberg.

HSBC presents a

“diagnosis” showing how a number of economies are and are not seeing impacts from these and other macro factors. New entries on the bank’s list of concerns include the previously-mentioned Malaysia, Indonesia, Sweden and Norway, while New Zealand also makes the cut thanks to its links to China, rising asset prices and tumbling milk prices.”Although low risk, New Zealand may be one to watch,”

Now for my mind China is still a large economic powerhouse and whilst commodity prices will continue to tumble – New Zealand is in a far better situation than a lot of countries in Europe.

Having said that – country and household debt is the single biggest issue here – the overall borrowing position of all of these Countries are subject to higher borrowing costs due to risk.

Full story available here:-

http://www.bloomberg.com/news/articles/2015-10-21/hsbc-these-are-the-economies-that-could-run-into-trouble

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