After experiencing two years of weak growth due to COVID outbreaks, ASEAN has been on a strong recovery path in 2022. Consumption and investment levels are recovering while open borders are driving higher tourist inflows. The recovery, which is being driven by pent-up demand and strong domestic fundamentals, will continue in 2023, making the region a global bright spot.

While ASEAN will continue to provide growth opportunities, global headwinds will slow the pace of recovery. Aggressive rate hikes by the US Federal Reserve, Europe’s energy situation, and strict lockdowns in China will weigh on all aspects of growth in ASEAN. The region will deal with constrained supply of essential commodities, shipping delays, surging inflation, currency depreciation, rising interest rates, and weak export demand.

Trends & updates covered in our report:

  • Economic activity in most ASEAN markets will recover well above pre-pandemic levels by the end of 2023
  • All ASEAN currencies will remain much weaker over the next 12 months compared to early 2022 levels
  • Global supply shortages due to the Ukraine war will lead to elevated inflation levels in 2023

Firms should note that the pace of recovery will vary across markets in ASEAN, making it imperative to carefully prioritize markets that will be faster to recover next year.

Download an Executive Summary of the ASEAN Outlook for 2023

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