The Real Estate Market In China Has A Chance To Revive, Indonesia Economy Is More Resilient
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The pandemic, Russia's attack on Ukraine will cause a series of difficulties, especially economic ones. Asian countries play an important role in the global economy, and their condition is particularly important. China, after covid restrictions, is back to recovery, including the real estate market. Indonesia is showing that despite external influence it is doing well.
In this article:
- Chinese households
- Indonesia is doing well
- The value of muni ETFs
Chinese households
There is no shortage of problems caused by the pandemic in the Chinese economy. The real estate market will definitely weaken. The number of families who choose not to invest in real estate has increased significantly.
China's real estate sector, once a key driver of the world's second-largest economy, fell into a deep crisis in 2022, with real estate investment and sales plummeting, which took a toll on house prices.
But there is an optimistic signal. More households were considering buying a home or investing in other assets in the coming three months, according to a survey by a research institute and think tank within the Ant Group and Southwestern University of Finance and Economics published Wednesday.
The survey also shows that respondents' willingness to invest in domestic stocks, funds and foreign asset classes has also increased.
Stabilizing the crisis-hit real estate sector will be a key challenge this year for policy makers as they attempt to kick-start economic recovery. Much depends on how quickly people start spending again after the government abruptly lifted strict COVID-19 restrictions in December.
The number of Chinese households that decided against buying a home soared in the fourth quarter of 2022, a private survey showed, as COVID infections and lockdowns sapped sentiment, while property foreclosures soared as the economy slowed. More here: https://t.co/vo2GeVfK8u
— Reuters Business (@ReutersBiz) February 23, 2023
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Indonesia is doing well
As the world's largest economy, what the US does has major implications around the world, including in Indonesia.
Therefore, Indonesia is taking steps to make its economy more resilient so that it can withstand global shocks such as inflation, especially from the United States.
Indonesia has coordinated its fiscal and monetary policy tools well to contain inflation and sustain growth.
Unlike the US, where inflation remains stubbornly high, inflation in Indonesia fell in January. The headline consumer price index, the main indicator of inflation, fell to 5.28% yoy in January from 5.51% in December.
The Indonesian minister said that despite the global slowdown, Indonesia's economic growth remains strong and domestic demand continues to improve.
Indonesia says it's working to become more resilient to inflation shocks from the U.S. https://t.co/jdgiXla4Ka
— CNBC (@CNBC) February 23, 2023
The value of muni ETFs
In the past, ownership of municipal bonds was largely limited to very wealthy investors: it takes significant assets to build a diversified portfolio of municipal bonds, and investing in them requires a high level of expertise and management between brokers and clients. However, the introduction of exchange-traded funds (ETFs) holding an assortment of municipal bonds has created an attractive option for investors.
Morgan Stanley Research expects the value of muni ETFs to double to $200 billion in assets under management by 2026, about a third of the time it takes for this asset class to reach $100 billion.
Municipal exchange-traded fund assets are growing, which could improve market structure and give more households the potential to reap tax benefits. Learn more: https://t.co/WvxFskSqe5 #ETFs
— Morgan Stanley (@MorganStanley) February 22, 2023
