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Asean emerging stronger post-Covid: Foreign investment set to rebound

Manu Bhaskaran
Manu Bhaskaran6/1/2022 08:39 PM GMT+08  • 10 min read
Asean emerging stronger post-Covid: Foreign investment set to rebound
Shanghai residents out on the streets on May 31 following the easing of Covid restrictions. China’s relentless pursuit of zero-Covid has visibly shaken foreign investor confidence in China / Photo: Bloomberg
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Even as the Covid pandemic recedes, the world remains awash with threats to peace and economic vitality due to Russia’s war in Ukraine, the stepped-up pace of monetary tightening by global central banks and the slowdown in China. Yet — so far at least — the economies of Southeast Asia have held up relatively well in this downbeat environment. Economic growth has not plunged as in other parts of the world and the surge in inflation has also been less intense.

Whether such resilience can be sustained depends on the region’s fundamentals. It is encouraging, therefore, to see foreign investors give a vote of confidence in the Asean region: We believe that this faith is a product of improving fundamentals and that foreign direct investment (FDI) will continue to grow and contribute to an acceleration of economic transformation in Southeast Asia.

FDI trends in 2021 were encouraging — and it could get even better

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