Southeast Asia Economic Outlook 2022
Posted: Mon Jan 20, 2025 6:03 am
AWhile the overall outlook for Southeast Asian economies looks promising for next year, some believe we should temper expectations due to ongoing developments. There are a number of factors driving this, but the current theme is really Covid and its impact. Earlier this year, there was optimism that SEA could turn the corner on the pandemic and start to take off, but overall vaccination rates are low compared to other regions and expectations have fallen, an outlook supported by the Asian Development Bank.
However, all is not lost. Despite the obstacles, the region is still expected to see respectable growth next year, albeit at a lower rate. Growth of around 5% seems to be the base case for many economists and banks. Now the good news is that Southeast Asia is not seeing much inflationary pressure compared to the rest of the world. As other countries prepare to roll canada telegram number database back monetary policies implemented since early last year and plan to eventually raise interest rates, Southeast Asian central banks will largely remain accommodative. This will not only reduce the pressure on their financial systems, but should also open up a good entry point for investors to enter the region next year and beyond.
We also need to understand that given the current situation, risks have risen. While the region has not yet experienced the massive supply chain and deterioration issues faced by other countries, new coronavirus variants could have far-reaching effects. SEA’s habit is to take measures first and ask questions later. Asian giants, including Japan and China, with zero infection policies, are not immune to these strong regulations. If many countries in the region go into lockdown mode next year, growth rates will need to be readjusted immediately. So, in other words: a lot depends on the trends that emerge and how politicians react.
However, all is not lost. Despite the obstacles, the region is still expected to see respectable growth next year, albeit at a lower rate. Growth of around 5% seems to be the base case for many economists and banks. Now the good news is that Southeast Asia is not seeing much inflationary pressure compared to the rest of the world. As other countries prepare to roll canada telegram number database back monetary policies implemented since early last year and plan to eventually raise interest rates, Southeast Asian central banks will largely remain accommodative. This will not only reduce the pressure on their financial systems, but should also open up a good entry point for investors to enter the region next year and beyond.
We also need to understand that given the current situation, risks have risen. While the region has not yet experienced the massive supply chain and deterioration issues faced by other countries, new coronavirus variants could have far-reaching effects. SEA’s habit is to take measures first and ask questions later. Asian giants, including Japan and China, with zero infection policies, are not immune to these strong regulations. If many countries in the region go into lockdown mode next year, growth rates will need to be readjusted immediately. So, in other words: a lot depends on the trends that emerge and how politicians react.