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China could be on the way back in 2023.
If, as expected, China begins to open up in the New Year, and joins the rest of the world in treating COVID-19 as endemic, the regional and global economy would benefit significantly.
Such a move would have a welcome impact on demand, as advanced economies like the United States of America and Europe show signs of slowing down quite markedly.
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Another critical opportunity in 2023 will be the ongoing shift in capital flows in the Asian region. Increased investment from multinationals into countries like Indonesia, Vietnam and India will continue as businesses seek to diversify away from China.
Of course, the spectre of inflation will be an ongoing challenge in 2023.
My plate of chicken rice has already gone up from $S5.50 to $S6.50, and I expect inflation to remain quite a challenge for households and businesses in 2023.
Rising interest rates also poses a challenge, but if the economy continues to expand, those challenges are likely to be manageable.
The economic and geopolitical factors that have shaped an unprecedented period for business around the world are not going anywhere soon.
As 2023 looms, large organisations face a cocktail of influences impacting the way they do business: rapid digitisation, shifting supply chains, geopolitical uncertainty, and the ongoing impacts of the COVID-19 pandemic.
At ANZ Institutional, we know our customers are looking to position themselves to take advantage of these forces.
As part of our Outlook 2023 series, we’re asking our subject-matter experts to provide insights in a range of complex areas from across more than 30 markets – helping you better understand how you can prepare for the New Year. We’ll be sharing the responses with you over the coming weeks.
Khoon Goh is Head of Asia Research at ANZ institutional
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