Asia Pacific Outlook

About this Report:

Asia Pacific is being buffeted by disruptive forces, both external and internal. In the US, the Federal Reserve is tightening monetary policy, raising global interest rates, and putting pressure on APAC’s central banks to follow suit.

In EMEA, Russia’s invasion of Ukraine is pushing up commodity prices, exacerbating shipping bottlenecks, and weighing heavily on Europe’s growth. In China, under the government’s zero-COVID strategy, leaders are imposing increasingly aggressive lockdowns, disrupting global supply chains and undermining growth in APAC’s largest market.

Together, these forces are upsetting business activity, weighing on household spending, and forcing some governments to divert resources. Nevertheless, Asia Pacific is positioned to grow more quickly than many other major regions globally, so APAC executives should prepare to face ambitious targets, even as they navigate increased volatility.

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