Southeast Asia

While economic growth in Southeast Asia remains robust, it is vulnerable to external headwinds such as any slowdown in global demand. Many Southeast Asian countries are heavily reliant on one or two major trading partners or export sectors, exacerbating the risks of global uncertainty. Despite this, robust regional demand is increasingly helping to buffer against these risks, with intraregional exports now surpassing exports to the United States, European Union, or Japan. The rapid rise of the consumer class is also fuelling a trade transition, with the region moving away from being merely the source and destination of intermediate goods to becoming the main export destination for final goods. Services trade is also accounting for an increasing share of trade for many regional economies. Southeast Asia can further boost its growing economic vibrancy by continuing to address regional economic barriers, especially in services trade and investment openness.