How Chinese Slowdown Will Impact The Global Economy And The Biggest Geo-Political Risk Of 2015

The start of 2015 hasn’t been all that great as almost all regions and countries across the world are going through crisis. From recession in Europe to slowdown in China, the situation is such that US, which is still fragile, is being considered by many as the best investment destination in the World.

Eurasia Group Asia Director, Nicholas Consonery, was on Bloomberg to discuss the impact of a slowdown in Chinese economy and the biggest geo-political risk in 2015.

“This is a government that in China, in Beijing that I think is clearly becoming more accepted and more tolerant of slower economic growth,” Consonery said. “I think, that’s positive for what they are trying to do with reform within the economy and in our view actually the big risk in 2015 is much less in China and much more about these emerging markets that are very reliant on commodity exports,”

He continued, “Places like Brazil, Indonesia, Thailand, even Australia which is not in EM, but has huge commodity export story directly exposed to China and we think those countries are very vulnerable.”

The Biggest Geo-Political Risk In 2015  

“I actually think Thailand is the number one concern because there is this story of military […] and relative fragility in the system there, that’s been a big market story for the past year, but I think the attention in some ways has gotten away from that, that’s going to come back in a big way in 2015,” Consonery said.

He added, “I mean, very clearly, Thailand is exposed to the China slowdown, the slower growth within the country is going to make those [politics] even more difficult and this is a government that is trying to draft a new constitution, an extremely controversial process and the slowdown is going to make it that much more difficult.”