China’s slower-than-expected reopening will weigh on Asean growth: analysts

CHINA’S economy is recovering more slowly from the Covid-19 pandemic than anticipated, and the initial optimism expressed by observers has turned into caution over South-east Asia’s prospects.

“The lack of a growth fillip from China is becoming increasingly obvious and will weigh on growth for (Asean-4) countries from the second to the fourth quarter this year,” said OCBC’s senior Asean economist Lavanya Venkateswaran, referring to Indonesia, Malaysia, the Philippines and Thailand.

“When China first abandoned its zero-Covid policy, an unsustainable euphoria took hold that a sustained and significant revival in domestic demand would be enjoyed,” Katrina Ell, senior Asia-Pacific economist at Moody’s Analytics, told The Business Times.