In Chinese astrology, the fire horse can be highly unpredictable, unstable, and sometimes a bit chaotic.
China’s economy and financial markets have experienced ups and downs recently, and there’s likely to be more of that in the upcoming Year of the Fire Horse.
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At ANZ Research, we hold a cautiously optimistic view on China. Gross domestic product is expected to grow within a range of 4.5 per cent to 5 per cent.
More encouragingly, China’s economy is increasingly relying more on technology, like artificial intelligence and robotics, which makes China more structurally resilient.
The Chinese currency will continue to appreciate, and the People’s Bank of China will be focussed on ensuring it does not do so excessively.
At the beginning of the Year of the Fire Horse, I wish you all a year of appreciation in your quality of life.
Raymond Yeung is Chief Economist, Greater China at ANZ
