What is the outlook for Asia fixed income in 2024? (2024)

What is the outlook for Asia fixed income in 2024?

With favourable growth and inflation dynamics, relative value against developed markets and potentially some big alpha opportunities emerging in China, we believe the outlook for Asia fixed income is strong in 2024.

What is the economic forecast for Asia in 2024?

We see GDP growth slowing to 4.6% in 2024 from 5.2% in 2023. This takes into account the continued strain from the property weakness and modest macroeconomic policy support. The key risks are weakness in property and consumption. They would lead to lower overall growth.

What is the outlook for Asia fixed income?

At the end of January, the benchmark 2-year and 10-year UST yields settled at 4.21% and 3.91%, respectively, 4.2 basis points (bps) lower and 3.3 bps higher compared to end-December. We maintain our positive outlook for Asian local government bonds, expecting higher returns and lower volatility in 2024.

What is the credit outlook for Asia Pacific in 2024?

Monetary policy will likely remain accommodative, with credit growth at around 9.5% yoy. We forecast one or two rate cuts in 1H 2024, totalling about 20 basis points.

Are investors bullish on Asia in 2024?

Here's what to look out for. The Asia Pacific region is expected to outperform the global economy in terms of growth, with the IMF expecting 4.2% growth from the region in 2024, compared to 2.9% globally.

Which is the fastest growing economy in 2024?

IMF Projections: The Fastest Growing Economies in 2024
CountryRegionGDP Growth 2024 (%)
πŸ‡²πŸ‡΄ Macao SARAsia Pacific27.2
πŸ‡¬πŸ‡Ύ GuyanaAmericas26.6
πŸ‡΅πŸ‡Ό PalauAsia Pacific12.4
πŸ‡³πŸ‡ͺ NigerSub-Saharan Africa11.1
17 more rows
Oct 24, 2023

Which is the fastest growing economy in the world 2024?

South Asia grew by an estimated 5.3 per cent in 2023 and is projected to increase by 5.2 per cent in 2024, driven by a robust expansion in India, which remains the fastest growing large economy in the world. India: Projected to grow by 6.2% in 2024, supported by domestic demand and growth in manufacturing and services.

What is the largest fixed income market?

The U.S. fixed income markets are the largest in the world, comprising 39.3% of the $138.6 trillion securities outstanding across the globe, or $54.5 trillion (as of 3Q23). This is 2.2x the next largest market, the EU.

Why is Asia high yield?

Dispelling concerns about default rates, liquidity and diversification potential, we believe Asian high yield offers investors the income and growth they want.

What is the global and Asia economic outlook?

The Asia-Pacific region remains a key driver of global growth in 2023, despite facing headwinds from changing global demand from goods to services and tighter monetary policies. The region is expected to grow by 4.6 percent in 2023, up from 3.9 percent in 2022.

What will happen to the economy in 2024?

Our forecasts call for the U.S. economy to grow 1.6% in 2024 and 1.7% in 2025. But if the U.S. labor market merely remains as resilient as it has been since late 2020, U.S. growth could be half a percentage point stronger in 2023 and 0.7 point stronger in 2025. The result would be much stronger global growth as well.

What will happen to Asia in 2050?

Massive urbanization.

By 2050, Asia will be transformed, as its urban population will nearly double from 1.6 billion to 3 billion. Asia's cities, which already account for more than 80 percent of economic output, will be the centers of higher education, innovation, and technological develop- ment.

What will global inflation be in 2024?

In 2024, global inflation is projected to decline to 5.8%, down from a 6.8% estimated annual average in 2023. Venezuela, with the largest oil reserves globally, is projected to see inflation reach 230%β€”the highest overall.

Is now a good time to invest in Asia?

Opportunities in Asia

But while the pandemic weighed on the market over the past few years, there are signs that things are changing. Post-pandemic economic activity is gradually returning to normal in Asia, and inflation is less of a concern than in developed markets.

What is the stock market outlook for Thailand in 2024?

The Stock Exchange of Thailand (SET) index is projected to reach 1,590 points by the end of 2024 with earnings per share (EPS) growing by more than 12% thanks to lower interest rates, says the Investment Analysts Association (IAA).

What sectors are bullish in 2024?

Top Sectors in Indian Stock Market
  • Health and Insurance Sector.
  • Renewable energy Sector.
  • IT Sector.
  • Real Estate Sector.

What countries have the best economic future?

Looking beyond 2024, the emerging markets best-positioned for growth are China, the Philippines, the Czech Republic, and Malaysia, according to a new Oxford Economics report. Countries with the weakest long-term growth outlook include Argentina, South Africa, Turkey, and Brazil.

What is the most developed country in the world in 2024?

Switzerland has been ranked as the world's most prosperous and developed country for the year 2024.

Will the economy get better in 2024?

The International Monetary Fund (IMF) forecasts a slight decline in global growth to 2.9% in 2024, down from 3% in 2023. However, much of this growth is made up of emerging markets activity, while growth in advanced economies remains tepid.

Which countries are facing economic crisis 2024?

Methodology
  • 15 - Greece. Debt To GDP - 160.2. Real GDP Growth Rate - 2. ...
  • 13 - Spain. Debt To GDP - 104.7. Real GDP Growth Rate - 1.7. ...
  • 10 - Portugal. Debt To GDP - 104. Real GDP Growth Rate - 1.5. ...
  • 9 - United States. Debt To GDP - 126.9. Real GDP Growth Rate - 1.5. ...
  • 8 - France. Debt To GDP - 110.5. ...
  • 7 - Finland. Debt To GDP - 73.
Feb 28, 2024

Who has the strongest economy in the world in 2050?

This statistic shows the projected top ten largest national economies in 2050. By 2050, China is forecasted to have a gross domestic product of over 58 trillion U.S. dollars.

Which is the fastest developing country in the world?

Guyana registered the world's highest real GDP growth rate in 2022, with its national output 62.4% higher. Driven by its booming oil sector, the economy is set to expand by 27.2% in 2023 and 34.2% next year β€” consolidating the country as the world's fastest-growing economy in 2024.

Should you sell bonds when interest rates rise?

If bond yields rise, existing bonds lose value. The change in bond values only relates to a bond's price on the open market, meaning if the bond is sold before maturity, the seller will obtain a higher or lower price for the bond compared to its face value, depending on current interest rates.

Is fixed income a good investment now?

Here are 3 reasons why now's a good time to evaluate the role of high-quality fixed income exposure in your portfolio. Bonds are providing healthier yields than we've seen since before the 2008 global financial crisis. Higher current yields support a much-improved outlook for bond returns going forward.

Should you buy bonds when interest rates are high?

Key Takeaways. Most bonds pay a fixed interest rate that becomes more attractive if interest rates fall, driving up demand and the price of the bond. Conversely, if interest rates rise, investors will no longer prefer the lower fixed interest rate paid by a bond, resulting in a decline in its price.

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