In 2022, the catalyst for ASEAN’s impressive growth is the explosion of personal consumption.
Following the widespread reopening, pent-up demand was released as consumers flocked back to shopping malls, eating out more, and traveling on holiday. ceremony.
HSBC in its latest research on the ASEAN region said that consumption growth is likely to moderate in 2023, but at least it will remain a key pillar supporting economic growth.
“Where consumption goes in 2023 depends on many factors, including inflation, fiscal policy, consumer sentiment, the recovery of the labor market and the savings rate,” HSBC said. analysis.
First and Foremost Inflation Remains a Major Concern for Consumers
Most of the ASEAN economies have passed the peak of inflation, although the Philippines and Vietnam continue to see increasing upward pressure on prices.
Even so, inflation is likely to slow down, meaning upward price pressures persist into at least the first half of 2023. After all, core inflation General Merchandise Stores Email List has picked up in most economies, reflecting vibrant labor market.
However, most policymakers in ASEAN are unlikely to implement large-scale consumer-oriented fiscal measures. After three years of strong support in a number of economies, the region as a whole agrees that ASEAN needs to pursue fiscal consolidation, albeit at a different pace.
For example, Malaysia and the Philippines could be two examples of slower implementation of fiscal consolidation than other countries.
Malaysia is Likely to Announce a Budget Plan for 2023 With Mostly
The Philippines has started 2023 with a reduction in personal income tax.
Indonesia is aiming to get bpandemic 3% fiscal deficit, and Thailand’s financial outlook may be uncertain, given the upcoming elections in May.
In the case of Singapore, the fiscal year 2023 budget already includes additional fiscal measures to offset the increased cost of living, although by natureget CMB Directory to these measures are not all people. people.
Even if most ASEAN economies are likely to gradually withdraw their financial bailouts, consumer sentiment in ASEAN remains high.