“The structural story for Southeast Asia remains very strong,” Cheo said at the HSBC Global Private Banking and Wealth 2022 Investment Outlook. “If the region can maintain around 5% growth over the next decade, Southeast Asia is going to be the fourth largest economic bloc behind the US, China and the Eurozone. Therefore, I think investors cannot afford to ignore Southeast Asia in 2022.”
Unlike most parts of the world that are going through economic slowdown this year in a mid-cycle economy, Southeast Asia is on the cusp of the new dawn and is expected to experience a growth spurt, says James Cheo, Southeast Asia chief investment officer (CIO) at HSBC Private Banking and Wealth Management.
He notes that Southeast Asia had a bumpy ride last year, growing at a mere 3.6%. With the economic reopening underway, the region could grow by 5.2%, translating into earnings growth of 12.3% for Southeast Asian companies.
