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THE INTERNATIONAL Monetary Fund (IMF) estimates that the Southeast Asian region (ASEAN) will grow stronger economically and support each other by 2023.
On the other hand, global economic growth this year is at risk of being hampered by the influence of China, which is feared to be unable to recover from the pandemic. In addition, the escalation of the Russia-Ukraine war, debt in many countries, the rate of inflation, as well as the expansion of geopolitical fragmentation, will further hamper world economic growth in 2023.
Quoted from various sources, here is the economic growth of the seven largest countries in Southeast Asia:
1. Philippines
The Philippines is the country with the highest economic growth in Southeast Asia, for the time being. This is because a number of other countries such as Malaysia, Vietnam, and Thailand, have yet to officially report their country’s economic growth.
The Philippines’ economic growth throughout 2022 grew by 7.6%, above the government’s target in the range of 6.5% to 7.5%, and stronger than the previous year’s growth of 5.7%.
In the fourth quarter of 2022, the Philippine economy grew by 7.2% on an annualized basis (yoy), beating expectations. Meanwhile, economic growth in Q3-2022 was 7.6%. On a quarterly basis (qtq), Philippine GDP reached 2.4% in October-December, compared to expectations for a 1.5% increase and 2.9% growth in the previous quarter.
2. Indonesia
The Central Bureau of Statistics (BPS) has just announced Indonesia’s economic growth throughout 2022. Cumulatively, from January to December, Indonesia recorded economic growth of 5.31% last year.
This figure makes Indonesia ranked second with the largest economic growth in Southeast Asia. However, this position could change if Malaysia, Vietnam, and Thailand, have officially announced their economic growth.
On an annualized basis, in the fourth quarter of 2022 the Indonesian economy grew 5.01% compared to the same quarter in 2021. Meanwhile, on a quarterly basis, the Indonesian economy grew 0.36% compared to the third quarter of 2022. The economic growth rate of 5.31% in 2022 is much higher than the previous year. Cumulatively in 2021, BPS reported that Indonesia’s economic realization only grew by 3.69%.
3. Singapore
Singapore’s economy throughout 2022 grew 3.8%, slowing sharply from 7.6% growth in the previous year. On an annualized basis, Singapore’s economy grew 2.2%, also slowing from 4.2% growth in the previous quarter.
The fourth quarter slowdown was due to a 3.0 percent (yoy) contraction of the main manufacturing sector. This was a reversal from the 1.4% (yoy) growth in the previous quarter. The slowdown was due to shrinking growth in electronics manufacturing, chemicals, precision engineering, transportation engineering, and general manufacturing.
4. Malaysia
Malaysia has yet to officially report its economic growth for the cumulative period throughout 2022. Based on its latest report, Malaysia’s economy in the third quarter of 2022 grew by 14.2% (yoy), higher than the previous quarter which grew by 8.9% (yoy).
The economy in July-September 2022 surged above 14% due to high export demand and domestic consumption. In addition, Malaysia’s high economic growth in the third quarter of 2022 on an annualized basis was due to the low statistical base in the third quarter of 2021.
5. Thailand
Thailand has also yet to officially report its economic growth for the cumulative period throughout 2022. Based on its latest report, the Thai economy grew 4.5% in the third quarter of 2022 on an annualized basis (yoy).
This growth was triggered by government policies that lifted restrictions on Covid-19 so that the tourism sector began to recover. However, Thailand’s economic outlook is still shrouded by various risks such as inflation that touched a 14-year high, China’s economic slowdown, and weaker global demand.
The Thai government targets the economy to grow 3.2% throughout 2022, higher than the previous forecast range of 2.7% to 3.2%. While 2023 growth is expected to reach 3.0% to 4.0%.
6. Vietnam
Vietnam has yet to officially report its economic growth for the whole of 2022. However, the ‘Land of a Million Nguyens’ grew 13.67% in the third quarter of 2022, higher than the previous quarter of 7.72%.
Vietnam’s economy in that period was boosted by the industrial and construction sectors, which grew 12.91%. Then, the service sector also grew 18.86% and agriculture grew 3.24%. Vietnam is one of the countries that is recovering from the COVID-19 pandemic. The country’s economy had contracted by more than six percent in the third quarter of 2021 and began to improve in early 2022.
7. Brunei Darussalam
Brunei Darussalam has also not yet launched its economy for the whole of 2022. In the third quarter of 2022, Brunei’s economy reportedly grew by 0.9%, up from the previous quarter which contracted by 4.4%.
It is known that Brunei is based on oil and gas, with the livelihood of the population being in the field of import and export services and industry which is engaged in oil and gas mining. This makes Brunei one of the countries with the highest per capita income in the world despite its status as a developing country.
In addition, the livelihoods of Bruneians are also engaged in plantations and agriculture that depend on rivers, such as the Belait, Brunei, Temburong, and Tudong Rivers. However, the agricultural output of Brunei is not that large, so it is only utilized to meet the daily needs of its people. [sources/photo special]
