After two years of pandemic-driven disruption, an ongoing global slowdown is complicating ASEAN’s economic recovery. Although global headwinds will weigh on all aspects of growth in the region, we believe strong domestic fundamentals will support a broad-based recovery in 2023.
Southeast Asia is benefiting from tailwinds in the form of a post-COVID recovery. Retail sales are recovering strongly on the back of pent-up demand, while open borders are continuing to drive higher tourist inflows. However, constrained supply of essential commodities, shipping delays, surging inflation, currency depreciation, and weak global growth will slow the pace of recovery in 2023. These global headwinds will impact individual Southeast Asian markets in different ways and to varying degrees.
During this interactive webinar, we cut through the complexity in the region to highlight key markets that are poised to recover more quickly next year. We also identified opportunities in the B2B, B2C, and B2G sectors while accounting for operational challenges and key political risks in the region.
- The growth slowdown in the US and Europe and lockdowns in China will weigh on growth in Southeast Asia. However, the region will see some bright spots in the next 15 months.
- As ASEAN becomes a more attractive investment location amid global volatility, foreign investment levels will continue to increase in 2023.
- Tourist inflows will continue to increase in the coming quarters, but extended lockdowns in China will restrict a full recovery in 2023.
- Government spending will be lower than expected in 2023 but infrastructure and healthcare spending will be a top priority for most governments.
- Political uncertainty in Thailand and Malaysia will be crucial to monitor, as potential changes in government will have wide-ranging policy implications.
Preview the ASEAN Webinar Recording
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