Best Research Ideas
Asia Outlook 2023 – Our Best Ideas
While global economic conditions continue to deteriorate as inflation remains high and markets remain uncertain, Asia could be the best of a bad lot and avoid an outright recession. In the aftermath of the 2000 dotcom bust and the 2008 Great Recession, Asia bounced back quickly, and we expect that it can do the same in 2023. This could take place as investors are crowded into developed markets and appear to under own emerging markets. While Europe and the U.S. face a slowdown and recession, Asia could achieve real growth of 3-4% supported by its free trade agreements, lower cost bases and more efficient supply chains. In addition, while currently subdued, China's economy will be in better shape in 2023 as it slowly moves away from Zero-COVID policies. In the absence of any further energy shocks, Asian inflation should also moderate, allowing for demand recovery.
— Jefferies Asia Research