In mid-November, China signed an important and symbolic free-trade agreement with 14 countries, including Japan, South Korea, New Zealand, and Australia. The deal, which represents 30% of the world’s population, eliminates tariffs and quotas on 65% of goods traded in the Asia–Pacific region.
Global economists say the deal is further evidence of Asia’s growing power, particularly considering China’s feuding tariffs with the U.S. throughout the past four years.1 So, what does this mean for financial planning services in Palm Beach?
According to data from the International Monetary Fund, in 2019, China represented 40% of global economic growth – more than the global growth contributions of the U.S., Europe, and Japan combined. This year, China’s economy has proven quite resilient, particularly when compared to other developed countries in the wake of the global financial crisis, Trump tariffs, and even the coronavirus.2 That means potentially fruitful investment opportunities.
How about you? Has your household proven to be as resilient in the wake of this global pandemic as your friends, family, and colleagues? If so, what was the key? Perhaps it could be because you were able to maintain your level of income. Consider whether your spending levels the same as before. Perhaps not the same types of expenses, but has your financial status given you the confidence to spend without interruption? These questions can be helpful when assessing your situation.
We should continue to engage in intentional, goal-driven financial planning services in Palm Beach to keep our household on track. If you’ve been able to maintain your financial state through the global pandemic, keep doing what you’re doing.
If the global pandemic has affected you, assess your financial state, and devise a plan to help get back on track. As always, we are here to help assess investment opportunities for your family’s financial future.
In China, the coronavirus seems to be mostly under control. Consequently, the economic recovery has been V-shaped, led by strong domestic consumer demand. This trendline demonstrates a direct correlation between “flattening the curve” and economic recovery. Chinese revenues continue to trend upward in auto sales, residential real estate, and even restaurants and bars – although the latter is not fully restored to pre-pandemic levels due to continued caution with large indoor gatherings.3
The lesson here can be that containing COVID-19 is the key to any country’s economic recovery. The evidence doesn’t lie solely with China. Other countries that have successfully controlled the spread of the virus, such as Taiwan, South Korea, and Lithuania, also experienced lessened economic effects.4
Like every other country in the world, the Chinese economy will likely not be able to recover completely until a safe and effective vaccine is widely available. However, because it acted quickly and aggressively to contain the virus within its boundaries.5
Legacy Financial Partners can ensure smooth financial sailing even in the rough economic waters left in the wake of COVID-19. Get in touch today to learn how we can help!
Content prepared by Kara Stefan Communications.
1 Jill Disis and Laura He. CNN. Nov. 17, 2020. “China signs huge Asia Pacific trade deal with 14 countries.” https://www.cnn.com/2020/11/16/economy/rcep-trade-agreement-intl-hnk/index.html. Accessed Nov. 17, 2020.
2 Andy Rothman. Matthews Asia. July 16, 2020. “China’s Economic resilience.” https://global.matthewsasia.com/resources/docs/global.matthewsasia.com/pdf/Sinology/071620-Sinology.pdf. Accessed Nov. 16, 2020.
3 Andy Rothman. Matthews Asia. Aug. 14, 2020. “Four China Trends.” https://global.matthewsasia.com/resources/docs/global.matthewsasia.com/pdf/Sinology/081420-Sinology.pdf. Accessed Nov. 16, 2020.
4 Joe Hasell. Our World in Data. Sept. 1, 2020. “Which countries have protected both health and the economy in the pandemic?” https://ourworldindata.org/covid-health-economy. Accessed Nov. 16, 2020.
5 Andy Rothman. Matthews Asia. Oct. 19, 2020. “China After COVID.” https://us.matthewsasia.com/perspectives-on-asia/sinology/default.fs. Accessed Nov. 16, 2020.
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