The growth of Southeast Asian economy shows multiple results for the region
Southeast Asian countries are expected to see positive levels of economic growth in 2023 despite the sombre predictions for the global economy. The World Economic Forum reported that the Association of SouthEast Asian Nations (ASEAN) has shown optimism in the region during the World Economic Forum’s Annual Meeting 2023 last January 16-20 in Davos, Switzerland.
In 2021, the region received a total of USD3.3 trillion in total Gross Domestic Product (GDP) making up 3.5 percent of the global GDP that year. By 2023, the GDP is predicted to reach 5.2 percent in 2023, with the economic growth varying per country within ASEAN.
The growing economy and population is predicted to be met with an increase in energy demand by 2050. According to the International Renewable Energy Agency (IRENA), the region could reach the demand with renewable energy sources and sustainable living to reduce emissions. Here, the real estate sector will become a focus for investment to help shift Southeast Asians to live more sustainably. At present, the sector have already started incorporating renewable energy to residences and infrastructures whether it be through energy-saving appliances or entire solar power grids.
Colliers noted the emphasis investors have placed on Environmental, Social, and Governance (ESG) criteria and ratings of real estate in general. It exceeds the point of making a good reputation and answers the demand for sustainability in workplaces and long term cost-efficiency. Investors focus on sustainable aspects when looking into different assets and hold these with high regard over other characteristics since these sell more.
The Property Report editors wrote this article. For more information, email: [email protected].
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