There’s no question what everyone’s thinking about these days. In this weekly update, we gather and analyze recession-related news so that you don’t have to. Are we at rock bottom yet? Who’s winning or losing? How are companies reacting, and how should you react? Read on to find out.
Is it over yet?
JPMorgan Chase last week released its 2023 outlook for Southeast Asia’s equity markets, which could have upstream effects on startups and private companies.
Image credit: Timmy Loen
Indonesia and Vietnam set to outperform
The investment bank is bullish on these two markets. Indonesia is seeing strong domestic consumption and foreign investments, and the government is pushing for electric vehicles and a transition to green energy.
Vietnam has a budget surplus and policy support to help offset lagging exports.
Singapore and Thailand got a neutral rating from JPMorgan while Malaysia and the Philippines received negative marks. Malaysia faces risk from its reliance on trade and weakness in the gloves industry. The Philippines, meanwhile, is in for budget deficits as well as diminishing demand from high inflation.
Staples, healthcare, and utilities to remain resilient
Food staples will likely see its prices bounce back after a period of high inflation. Healthcare will see a recovery in medical tourism, while utilities will also benefit from falling prices.
These industries also have an advantage by being essential no matter the economic cycle.
On the other end, the materials, IT, and real estate sectors are expected to underperform. Prices of commodities are set to decline, while spending on IT equipment and software is expected to drop. High mortgage rates may start hurting property sales, JPMorgan predicts.
Ups and downs
Layoffs are continuing at a furious pace
The tide of layoffs continues, hitting a peak last week.
Edtech firm Vedantu and hotel chain Oyo in India sacked hundreds of workers. So did Singapore-based HR platform Glints, which attributed its decision to a short-term slowdown in its business growth.
Recession-proofing
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