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There was first the trade war, then COVID-19, but the World Bank says there is a Third Shock Coming. This shock being driven by the flight of investment from developing countries. In the first quarter more foreign investment has left developing countries as has been invested during the peak. East Asia growth will be down from 5.8% in 2019 to 2.1%.
Elevated domestic debt in China, Malaysia, Thailand, and Vietnam as now major vulnerabilities. There is a bit of silver lining in their report though. Vietnam, Myanmar, and Cambodia are best suited to ride out this storm. When this all clears out……I’ll see you in Yangon ; ) .
Source: asia.nikkei.com