Economic outcomes can be delivered amid uncertainty, with the housing market set to appreciate by 2-3% in 2022 despite fears of impending foreclosures by banks, says Global Chief Economist at Juwait IQI, Shan Saeed.
“While banks remain cautious due to market volatility, a shift will inevitably happen as the crisis will drastically change the way we do business, “ he says.
To understand the economy, Shan says that the global post lockdown perspectives show that the economy will rebound in a structured manner as consumption rises.
“Economic uncertainties do happen in the landscape and it has become a level playing field for all as players are forced to deliver economic outcomes despite fragilities,” he adds.
He stresses that post lockdown reopening can herald a new dimension in the economic structure and things will look up towards a more sustainable model.
” Economic confidence is the key and Malaysia can withstand the pressures of exogenous variables, financial market shenanigans and above all domestic market hiccups.” Shan says.
“Housing market defaults, recoveries, bubbles and stable markets are all part of the game. Nothing new to hear in these tumultuous times. The challenge is how to guide sophisticated and smart investors in taking a long term position in real estate to benefit their asset portfolios. History has taught us: in difficult times, the only fixed asset that goes up is Land.” he says.
On the market outlook, he said that “Macroeconomic stability” remains the key for next year as the global economy continues to be in fragile mode adding that he is cautiously optimistic and foresees GDP of 3% to 4% in 2021 with inflation to be in the region of 1% to 2%.