Viewpoints Asia Market Outlook 2023: Regional Resilience Amid Strained Global Markets As the COVID-19 recovery continues, we expect Asia’s growth-inflation dynamics to diverge from the rest of the world, led by China’s long-awaited economic reopening.
Despite global economic headwinds, including a likely recession in developed markets, we believe economic growth in many Asian markets will remain resilient in 2023 as the recovery from COVID-19 continues.We think China’s faster-than-expected reopening – which began with the end of its zero-COVID strategy in early December – may also boost both the global and regional economies, in particular for tourism-reliant Thailand and China-growth-sensitive Malaysia. Our baseline 2023 annual GDP growth forecast for China is above 5%, which we expect to be led by pent-up consumer demand, up from 3% in 2022. To Read the Full Article Log In Or Register
Viewpoints China Steps Up Property Support: Is This the Turning Point for the Struggling Sector? China’s introduction of comprehensive support for its real estate sector could provide some cyclical relief amidst longer-term headwinds, but new COVID-19 waves cloud the outlook.
Blog Continuity and Concrete Direction: Takeaways From China’s 20th Party Congress Stability, security and self-reliance were overarching themes from China’s twice-a-decade leadership reshuffle. With few details disclosed on near-term supporting policies, we remain cautious on the Chinese market.
Viewpoints Local Government Financing Vehicles: A Growing Risk for China’s Economy? We believe idiosyncratic credit events may occur over the next 12 months, but systemic bank risk is remote.