In today’s briefing:
- Omicron Variant: Mere Speed Bump Rather than Pothole in Path to Recovery
- Geo-Political Risks: Indo-Pacific Arena Heats Up
Omicron Variant: Mere Speed Bump Rather than Pothole in Path to Recovery
- PMI surveys show the regional economies performing well. Manufacturing is supported by improving demand. Price pressures, while diminishing somewhat, remain a risk, though.
- The omicron variant will produce a surge in infections across our region. However, if the pattern in South Africa is repeated, this surge will end fairly quickly.
- It helps that governments are avoiding overly stringent responses, helped by rising vaccination rates. Consumers and businesses have also learnt to adapt better to surges of infections.
Geo-Political Risks: Indo-Pacific Arena Heats Up
- The US and Japan are further strengthening their defence ties as they face up to China’s challenge: they will step up collaboration on military technology.
- China’s BRI projects may be turning out to be costlier than it had expected, particularly in Sri Lanka and Pakistan.
- China is likely to recalibrate strategy to deal with these challenges. It needs to dial down its assertiveness towards other Asian countries and will revise its BRI.
Before it’s here, it’s on Smartkarma
