MEXICO CITY, MEXICO – Investors should not take the recent crisis of the Chinese economy lightly, says foreign exchange specialist Pablo Soria de Lachica, who predicts that – because of the size of China’s economy – “all countries will feel a definite impact.”
After growing rapidly, the Chinese stock market bubble has popped, and nations around the world are starting to feel the decline in one way or another. In addition to the stock market, the country’s economy as a whole has slowed down, a development that has already resulted in lower oil prices, due to the decreased demand from the People’s Republic. Only one year ago, the average price for a barrel of oil was $100. Today, it has shrunken by 55% to $45, and Goldman Sachs estimates that the decline could go down as low as $20 per barrel. Pablo Soria de Lachica, the Director of Business Development at Kartoshka, a Panama-based currency-trading firm, predicts that a “quick recovery” of oil prices will not be likely, since OPEC has no plans to cut production in order to match the new, lower demand. “Investors can expect that prices will continue to fall in the coming months,” says Soria de Lachica, “and should plan their investment moves accordingly.”
The impact, however, is by no means restricted to oil. “China is the world’s largest importer of metals, including iron ore and copper, so the dwindling demand will affect producers of those commodities as well,” warns Soria de Lachica. Exporters who send a majority of their resources to China, such as Australia, Peru, Indonesia, Brazil, and Chile, are all at an extreme risk for economic decline. As the need falls, production of these commodities slows down as well, which in turn will lead to job losses in the affected countries. “It’s all inter-connected,” Soria de Lachica explains. “In today’s world trading market, one market cannot stand rise and fall in complete isolation. When one domino is knocked over, it takes the rest down with it.”
This is especially true, if the domino is the largest economy in the world: Following rapid growth from 2010 to 2013, by early 2014, the Chinese economy accounted for about 17 percent of the world’s GDP. As a result of this growth, China officially became recognized as the world’s lead trading nation. After enjoying economic highs, the decline began. In the first seven months of 2015, the demand for imports has decreased by 14.6 percent. “No country is immune,” states Soria de Lachica. “When a country the size of China experiences economic downfalls, the world economic scene will be impacted. While the exact repercussions of the fall are still unknown, it is essential that investors stay informed on this important issue,” he reminds.
Director of Business Development at Kartoshka, Pablo Soria de Lachica is a renowned expert on foreign exchange transactions. His goal is to empower investors to take charge of their financial knowledge and make wise decisions as they deal with the complex system of foreign trading. He believes that client education is the key to making smart investing decisions. A graduate of Universidad Tecnologico de Mexico, with a Master’s degree in Business Administration, he created extensive training material to educate his clients in the ever-changing world of forex.
Pablo Soria de Lachica – Warns of Detrimental Effects Trump’s Mexico Plans Could Have on U.S. Economy: http://www.marketwatch.com/story/pablo-soria-de-lachica—warns-of-detrimental-effects-trumps-mexico-plans-could-have-on-us-economy-2015-09-29
Pablo Soria de Lachica – Advises Clients on Advantage of Commodities Trading: http://www.marketwatch.com/story/pablo-soria-de-lachica—advises-clients-on-advantages-of-commodities-trading-2015-07-24