October 2021
Global risks are seemingly mounting, with an energy crisis, inflation and China growth concerns at the forefront.
First, we would like to state that our economic and resources views are weighted to our research centres in Australasia and Asia. Given the dynamic nature of this region, our forecasts are often optimistic by 2–5 % in comparison to those originating in Europe and North America. However, we have underestimated both global and Asian growth, which has been far stronger and longer than expected. Asia is the centre of the manufacturing world and is poised to become the centre of the economic world over the next decade. There is no modern recorded precedent and the continued dominance of Asia is AME’s unassailable view. This is based upon intense education standards, internal competition, adoption of a long-term view, political stability and industry supported by government.
Second, AME always uses the mantra that demand drives supply to create inventories that determines price (DSIP).