Southeast Asia Outlook 2023: Bouncing Back Stronger
Southeast Asia (SEA) is expected to be one of the leading sources of growth for the global economy as the United States and Europe tiptoe around a potential recession.
Our latest paper explores how Southeast Asia real estate market is positioned to develop given the latest economic and property trends. We look at the impact of China’s re-opening and rising interest rates and provide our views on investment opportunities, rents and capital value outlook for major property markets in SEA.
The Thai economy is expected to expand up to 3.7% in 2023, following a 2.6% growth in 2022. This growth will be fueled by the full return of international tourism, increased private consumption, further export resilience and strong manufacturing industries benefiting from Thailand’s pro-investment incentives. The country is seeing itself move up the value chain in Asia Pacific’s supply chain and is experiencing inbound investment as companies seek to diversify their supply chains and production networks.
The Bank of Thailand is forecasting headline inflation to average at 3.0% in 2023, compared to the 2022 average of 6.5%. The policy rate increased to 1.25% at the end of 2022 then up to 1.50% in January 2023, up from 0.5% at the beginning of 2022. Base interest rates are expected to rise to 2% by the end of 2023.