Macroeconomic policies pursued by ASEAN Member States and cooperation initiatives at the regional level strengthen the region’s strong economic credentials. The ASEAN economy grew by 5.7% in 2022, maintaining an average annual growth rate of 4.4% during 2010 - 2022. Its GDP increased from US$3.3 trillion in 2021 to US$3.6 trillion in 2022, making it the 5th largest economy in the world.¹

ASEAN remains an attractive investment hub with an inflow growth rate of 5.5% in 2022, achieving a total value of US$224.2 billion, ranking second in the world. The USA holds the first position with 16.3%, followed by ASEAN with 12.3%. The average inflation rate in 2022 was 7.68%.²

Positive Perception on ASEAN

Along with the positive trends in FDI is multinational companies’ improved perception on ASEAN countries. The most recent UNCTAD’s Investment Report places Singapore and Indonesia among the 20 most attractive investment destinations for the 2021-2022 period. Singapore ranks 4th, up one spot from its previous ranking, while Indonesia ranks 17th, up from 20th in 2021.³

ASEAN Countries as Economies of the Future

HSBC, one of the largest banks in the world, predicted the Philippines and Indonesia to be the 16th and 17th largest economies in the world by 2050 based on fundamentals such as current income per capita, rule of law, education, and demographic change. Malaysia, Thailand, Viet Nam, and Singapore were included in the top 50 economies predicted to dominate the world.