Southeast Asia Outlook 2024: Opportunity Beckons

Southeast Asia foresees strong economic growth in 2024, with most major economies expected to accelerate despite challenges like inflation and geopolitical tensions. Easing inflation and increased investments are poised to further support growth.

Our latest paper explores the promising growth prospects of Southeast Asia (SEA) in 2024. Forecasted to expand by 4.6%, SEA's economy is on an upward trajectory, outpacing the previous year's growth rate of 4.0%.

Indonesia continues to see strong private consumption and attract healthy FDI inflows of about USD 47 billion, a 13.7% yoy increase. FDI was significantly driven by investments: base metal industry and mining attracted 25% and 10% of FDI respectively, into the energy transition space, given Indonesia’s supply of nickel, a key ingredient for electrical vehicle batteries.

Despite a 6% increase in 2023, a projected decline in the central bank rate for 2024 suggests a move toward more favorable borrowing terms, potentially boosting the property market, though the crucial political context acknowledges that changes in government policy post-election could influence the central bank’s decisions.

View the report to learn more.