Asia Monthly Report July 2023

This report is a monthly analysis focusing on the economic conditions in Asia as of July 2023. It outlines the risks posed by the U.S. and China to stable growth in the region. The report indicates that while Asian economies are on a recovery path, driven primarily by the service sector, there is significant reliance on the economic performance of the U.S. and China, both of which are experiencing downturns. The document details the varying economic performances across different Asian countries, highlighting that those reliant on foreign demand, such as Taiwan and Vietnam, are facing challenges, while countries like the Philippines and Indonesia are benefiting from strong domestic demand. The report also discusses the expected continuation of the recovery, supported by improving employment conditions and easing inflationary pressures. However, it warns of potential economic downturns in the U.S. and China, which could adversely affect Asian economies. The forecast for stable growth in Asia for 2023 is projected at +5.3% year on year.