Your complimentary Southeast Asia report honing in on key SEA countries and their economic strengths and weaknesses.
Changes and risks in Southeast Asia
For the last decade or more, Asia’s emerging economies helped to power global growth; this has happened in an environment of low interest rates and fiscal stimulus programmes in the big western economies. But as the outlook changes, with rates starting to rise, the region is experiencing the arrival of unfamiliar change. And US-China trade tensions have become a key factor in that change.
While Southeast Asia is not facing catastrophic economic collapse, these forces are negatively affecting export growth – meaning negative effects for trade.
For companies with trading relationships in the region, risks to credit arrangements are real and ongoing. In the long term, the region’s countries have positive prospects for economic growth – and for exports. But in the short to medium term, risks are complicating the picture.
Where there are risks, companies benefit from managing them. Taking risk out of the system brings financial benefits, reducing uncertainty and making the difference between an average year and a good year.