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- The surge in foreign direct investment (FDI) in electronics, EVs and the digital economy signals the region’s growing potential. Southeast Asia could regain the position it had in the early 1990s as a premier FDI destination.
- The region’s reforms will help overcome challenges in absorbing FDI caused by infrastructure and other deficiencies.
- Asian financial stability has remained sound despite a series of global shocks, underlining the region’s improved resilience. This should help Asia withstand global financial stresses that might result from the sharp monetary tightening of the past year.
- The region has been helped by its relatively better inflation experience and improved regulation. That has allowed a more judicious pace of monetary tightening than in the US.