Southeast Asia’s long-term outlook remains robust with the region’s projected GDP growth from 2022 to 2023 forecast to outpace most other markets such as the US, the EU, and China. This is according to Bain & Company and Meta’s annual SYNC Southeast Asia report which looks at the digital economy and the future of e-commerce in the region.
Here are some key macrotrends:
- By the end of 2023, Southeast Asia is expected to maintain its projected growth at 5.1% compared with other markets such as the US (1.3%), the EU (2.1%), and China (4.7%) according to Bain & Company. Southeast Asia’s projected annual inflation rate from 2022 to 2023 is also expected to fare better than most of its peers.
- The study also found that Southeast Asia is seeing more foreign direct investment (FDI) being channeled into the region. FDI accounted for a greater proportion of total investment in 2021, at 17% versus 15% in 2015 and just 9% in 2009. This steady rise in foreign investment is a testament to investors’ confidence in Southeast Asia and is fueling the growth of new technologies such as fintech.
- The study found that Southeast Asia sees a higher penetration of e-Wallets, cryptocurrency and non-fungible tokens compared to most other markets such as China, the US, the EU and Japan, with almost 70% in Southeast Asia having used at least one metaverse-related tech in the last year.
This report looks at the digital consumer landscape in the region given these macrotrends and how it is expected to evolve over the next several years. It was produced by Bain & Company and Meta.
