What’s in store for emerging Asian economies in 2023? – DW – 12/27/2022
South and Southeast Asian economies have had a challenging 2022, a year when the global economy was supposed to have recovered from the ill effects of the COVID-19 pandemic.
Instead, the Russian invasion of Ukraine, coupled with continued supply chain snags, recurring COVID lockdowns in China and soaring inflation, among other problems, have dampened growth prospects and caused economic pain to businesses and households.
The aggressive hiking of interest rates by the US Federal Reserve to control surging inflation has also led to a depreciation of a number of Asian currencies vis-a-vis the US dollar.
This has worsened some nations’ debt troubles, eroded their purchasing power, and prompted their central banks to raise rates accordingly to prop up their currencies.
Trade-oriented ASEAN economies face headwinds
The rising costs for imports of food and fuel, among other goods, have depleted the foreign exchange reserves of…
