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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Key takeaways:
- 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.
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.
Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
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