Growth burst in Southeast Asia bolsters region as Fed hikes loom

(Nov 22): Southeast Asia is sitting pretty, with economies across the region poised to carry better-than-expected growth performances into 2018, putting them in a stronger position to withstand rising global interest rates.

The Philippines, Malaysia and Thailand are all posting their fastest economic growth rates in years, while Singapore is set to keep up that streak in data released Thursday. All four economies are projected to slow into the final three months of the year while retaining impressive 2017 growth figures and keeping pace into next year, according to Bloomberg survey data.

The region is on a solid footing as the Federal Reserve leads global central banks in tightening monetary policy, threatening to send investment flowing out of emerging markets in a replay of the “taper tantrum” of 2013. For Southeast Asia’s central banks, the trade rebound brings additional healing for export-reliant economies, and along with cleaner balance sheets and favourable inflation goals, gives policy makers room to breathe.

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