Amid continuing economic uncertainty in the region and globally, Lao PDR’s economy also has to deal with high inflation, growing government debt, deteriorating asset quality and limited fiscal space.
Lao PDR’s economy is expected to recover gradually from the pandemic crisis, expanding by 3.5 percent in 2022.
The Cambodian economy has been resilient. The early lifting of COVID-19 restrictions boosted domestic activity while strong external demand supported its recovery in the first half of 2022. As the economy recovers and COVID-19 becomes endemic, it will be vital to refocus policy toward structural reforms that will help improve the long-term growth potential of the economy.
Protected by its high vaccination rate, continuing nationwide inoculation program, and adequate healthcare capacity, Malaysia has progressively reopened its economy despite the resurgence of infections by the Omicron variant in early 2022. Economic growth should firm up further with the country’s transition to the endemic phase of COVID-19 from the beginning of April.
The Malaysian economy is recovering strongly from the COVID-19 disruptions in 2021 and early 2022.
The economic fallout from the prolonged pandemic has required extensive policy responses, leaving a large dent in policy space.
Japan’s sovereign credit rating could fall one to three notches in the coming decade if the government does not implement a credible fiscal consolidation plan. This risk, which the ASEAN+3 Macroeconomic Research Office (AMRO) highlighted in its recent annual consultation report on the country, underlines the challenges facing Japanese policymakers at a time of mounting global economic turmoil.
The Japanese economy is expected to grow at a faster 2.9 percent in 2022 after a moderate 1.7 percent recovery in 2021, reflecting pent-up private consumption and business investment.
The Japanese economy should grow at a faster 2.9 percent in 2022 after a moderate 1.7 percent recovery in 2021 from the economic effects of COVID-19 restrictions.
Thailand still has fiscal space to inject funds to boost the economy but it will need to start rebuilding buffers to guard against future shocks.
