Home Capital Broker's Calls

Malaysia to lead ASEAN 'Nike Swoosh' recovery: CGS-CIMB economists

Ng Qi Siang
Ng Qi Siang7/29/2020 04:07 PM GMT+08  • 4 min read
Malaysia to lead ASEAN 'Nike Swoosh' recovery: CGS-CIMB economists
Thailand is likely to recover slowest due to its high exposure to tourism and slow stimulus response to the crisis.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

A team of CGS-CIMB economists have predicted the ASEAN economic recovery to follow a “Nike swoosh”, with Malaysia likely to lead the pack for Southeast Asia. In short, they are saying that following a short and steep recession, the regional economy will slowly pick up amid lasting economic pressures and gradual easing of lockdown measures.

“Demand shocks from permanent business closures, unemployment, debt impairments and more cautious consumption habits could cast a longer shadow on the economic recovery relative to past recessions,” writes the team comprising Michelle Chia, Lim Yee Ping and Muhammad Zafri Zulkeffeli in a broker’s report yesterday.

The team does not expect global GDP to recover to pre-Covid-19 levels until 2022. Disinflationary measures are likely to persist over the next 18 months, with supply side restoration outpacing demand renewal alongside strong economic stimulus.

Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.