Positive growth and falling inflation in the US is good news for Asia-Pacific

The slow but positive growth and falling inflation in the United States are good news for the Asia-Pacific region.

In the context of high inflation, rising interest rates, fiscal dysfunction, and geopolitical conflict, many dismal scientists predicted that the U.S. economy would finish 2023 in stagnation or even a recession. Yet the U.S. economy has proven to be remarkably resilient.

In November and December 2023, the U.S. consumer price index rose by 0.1 percent and 0.3 percent, respectively. Relatively good news on inflation has prompted the Federal Reserve at its last meeting to keep interest rates unchanged and pointed to possible rate cuts in 2024. Throughout 2023, the unemployment rate remained at historic lows and the labor participation rate increased over the year. U.S. GDP performance beat expectations with robust 4.9 percent and 3.3 percent annualized growth rates in the third and fourth quarters of 2023. The S&P500 stock index rose 24 percent over the year and the U.S. dollar remained strong.

Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.

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