China and ASEAN Quarterly Q3 2024
The emerging markets in Southeast Asia are steaming ahead with very good economic growth rates. I don’t think it’s a surprise with the ongoing vibrant growth environment, though it stands out more when the mature economies are sliding deeper and deeper into a very low growth reality.
The ASEAN countries alone are not yet an economic superpower, but Asia is the largest economic zone in the world. Being the economic growth leader within such a region is notable and it underlines our long-standing view that it will pay off for investors to spend time in the ASEAN region.
The current slowdown in mature economies makes the different pace amongst the economic zones distinct again. It has been seen before, but it’s different this time because I don’t see any solution on how the mature economies can come back on track again. This is particularly evident in Europe – at the same time, the ASEAN countries are moving fast forward.
China is more complicated – and it has always been. Even for the Chinese leadership itself, where one of the challenges is to keep up the economic steam at the same level as in the neighbouring ASEAN countries, but less economic growth can do and continue to make China interesting for investors. Some investors have decided that China is too complicated to be kept in their portfolio, which is a choice that is open for each individual investor.
However, to leave out the world’s second largest economy in one’s portfolio could easily have an impact when working with global investment allocation.
As pointed out in one of the articles, China represents one-third of the world’s manufacturing capacity. How that manufacturing power is managed means something for the sector anywhere in the world. This is just an example on why it’s valuable to keep an eye on what goes on inside China.
I hope this quarterly magazine provides inspiration about the ASEAN opportunities and gives insights on China – as always, we are very happy for any feedback you may have.
With the best regards,
Peter Lundgreen
