China’s reopening will have significant economic implications for Southeast Asia and the world.
In 2022, Southeast Asia was powered by robust consumption, investment spending, and exports, which will continue in 2023, but some tailwinds will start to fade with slowing global growth.
The return of Chinese outbound tourism will significantly boost Southeast Asia’s labor market recovery, especially for tourism-related sectors such as food and beverage, entertainment, and hospitality.
China’s reopening will lead to higher consumption and result in it being more plugged into the global economy, boosting Southeast Asia’s exports.
The implementation of the Regional Comprehensive Economic Partnership will further integrate trade and accelerate investments between China and Southeast Asia.
South-east Asia has complementary strengths that, through the RCEP, have the potential to become a leading manufacturing hub of the future, one that is built on smart manufacturing, sustainability, and automation.
The South-east Asian stock markets recorded one of the strongest earnings growth in 2022, outperforming its global and regional peers, with Indonesia and Thailand as the key beneficiaries.
