We talk to international economist Shan Saeed on the economic and real estate outlook for 2Q and 3Q 2016.
It has been a very eventful 2015 for the global markets with currency and stock volatility and falling oil prices affecting market sentiments. Just when you think things couldn’t get any worse, a bloodbath in the market welcomed the beginning of 2016 prompting some panicked analysts and bankers to declare doomsday scenarios in the coming months. Fast forward four months later from January and we see things settling to a less combustible state.
The US Federal Reserve has indicated a more moderate stance in interest rate hikes for this year – this has largely calmed the markets. Meanwhile, a semblance of rationality has also appeared to descend upon major oil producers who have mostly agreed to limit oil production output – that and a ‘controlled’ slowing down of China’s economy have led to a breather to the gyrations. One publication has even headlined it “Is The Worst Over For Emerging Markets?” after markets there witnessed a slight uptick in sentiment.
Oil prices have gradually climbed up to more sustainable levels after hitting the lows. At the time of writing, the oil price was hovering around USD47 a barrel, nowhere near its previous long-term high of over USD100 a barrel.
‘NOT OUT OF THE WOODS’
What can we expect next?