Is Asia positioned for growth in 2023?
Mike Kerley, Portfolio Manager of Henderson Far East Income, reflects on the key drivers of performance in 2022, China’s reopening, inflation and interest rate risk in the Asia Pacific region and highlights the dividend trends he expects to play out in 2023.
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- We believe Asia’s economic growth will get back on track in 2023. The region is home to some of the fasted growing economies in the world, with inflation and interest rate risk less acute compared to other regions.
- China’s reopening, combined with the government’s growth agenda and a benign inflationary environment which gives China’s policymakers room to increase stimulus, should drive economic growth in 2023.
- The dividend outlook for the region looks bright as GDP and earnings growth are forecast to be higher than last year; this should translate to higher levels of cash flow and distributions.
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