Southeast Asia is facing headwinds in the face of the US-China trade war and increased global market volatility, but strong domestic policymaking and economic fundamentals should mitigate risks.
- The US-China trade war has a moderate impact on Southeast Asia, but strong domestic demand and countervailing policies support GDP growth.
- Increased risk aversion in international financial markets is felt by those countries with current account deficits, but strong economic fundamentals make a financial crisis unlikely.
- Some weaknesses still exist, making these economies vulnerable to the stronger US dollar and higher interest rates.
Read the full report here: Southeast Asia – coping well with headwinds
