Asia Economy

With economic growth slowing, inflation rising and the currency weakening, Indonesia faces some tough macroeconomic challenges. However, the government has responded to the situation with variety of monetary and fiscal policy tools, including raising interest rates while at the same time rolling out fiscal stimulus measures.

The Thai government has unveiled a new package of measures aimed at promoting economic activity and maintaining growth at up to 5%, though opinions are mixed whether the stimulus programme will be able to meet its targets, or even whether it is warranted in the current economic climate.

Foreign firms have objected to trade union proposals to raise the minimum wage, fearing this will cost the Philippines its competitive edge in what is an increasingly tough global investment climate. However, unions say the changes are crucial as workers need to shoulder increasing utility costs.

While the Philippines is one of the fastest-growing economies in South-east Asia, the country lags when it comes to foreign investment, particularly when compared to its regional neighbours.

An increase in oil and gas production is expected to boost Brunei Darussalam’s economy over the next few years, but international experts disagree on the magnitude and timing of this growth.

Growing interest from China in the Asia-Pacific region has driven up investment in Papua New Guinea (PNG), helping to accelerate economic expansion.