#RoughRide - Uncertainty about China’s economic performance and slowing trade growth will make 2016 a difficult year for shipping executives, according to one leading analyst, although he highlighted India as one possible bright spot if the Modi administration can deliver another year of strong growth, while Europe and Japan are also “potential positive stories” this year.
Peter Sand, Bimco chief shipping analyst, said all eyes would be on China this year as its leaders struggled with slowing economic growth. “This is mainly because of uncertainty surrounding the development of the world’s second largest economy,” he said. “When the first day of the Shanghai Stock Exchange of 2016 closed prematurely, the trading results echoed around the world. It warned us that we are in for a rough ride in 2016.”
Sand said the slow-down in China was echoed in emerging economies across Asia, South America and Africa. “China has in recent years spurred growth in emerging and developing markets, and as economic growth slows down for China as the main engine, so it does for others who normally benefit,” he said.
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