Covid has dealt a big blow to Asean but the region's economic outlook is bright

Its middle class is growing and its cities are expanding fast, analysts say; they expect the region to grow 5.2% and say stocks remain cheap

Angela Tan

Published Thu, Jan 13, 2022 · 05:50 AM

Asean

Singapore

ASEAN economies may have been dealt harder blows by Covid-19 than the rest of Asia, and the Sino-US relationship remains worrisome, but analysts say the outlook for the growth-driven region is bright and its stocks, relatively cheap.

Ken Peng, Citi Private Bank's head of investment strategy for the Asia-Pacific, said the multi-year forces driving the shift in economic power towards the region have not changed. More people are joining the ranks of the middle class, and urbanisation - particularly in India and Indonesia - may add 100 more names to the list of global cities with populations of over a million.