Economic growth has remained surprisingly robust in the second quarter (close to the 6% handle in year-on-year terms), outpacing all EU member states and raising questions about potential overheating.
We believe these concerns are a bit premature as macroeconomic imbalances are still within manageable levels – particularly for a fast-growing emerging economy, though fiscal slippages risks are worth keeping a close eye on.
We also note that there are signs that consumers might be more cautious compared to the 2006-2008 growth spurt. Overall, this looks like a Goldilocks economic backdrop for now, boding well for real estate as well.
