Most Asean economies to see faster GDP growth
Goldman Sachs says they are likely to have above-average earnings gains, and the developing digitalisation theme also adds appeal
Singapore
MOST Asean economies are likely to see accelerating gross domestic product (GDP) growth and above-average earnings gains as they recover from Covid setbacks, Goldman Sachs said at its 2022 outlook media roundtable. The US investment bank has upgraded Indonesia and Singapore to overweight, and Thailand to market weight.
"After 10 years of chronic under-performance of Asean against the region, valuations are generally at the lower end of their 20-year ranges and compare favourably to the rest of the region," said Timothy Moe, chief Asia- Pacific equity strategist at Goldman Sachs. Goldman Sachs economists are forecasting Asean-5 GDP growth will accelerate in 2022 to 5.3 per cent from 3.2 per cent as the region recovers from the pandemic shock. This should drive mid-teens to 20 per cent growth in earnings per share for most markets.
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