Sumary of Covid appears to be the ‘Achilles’ heel’ for Southeast Asian economies, says Jefferies:
- SINGAPORE — The failure to contain Covid infections is impeding the recovery of many Southeast Asian economies, says Sean Darby from Jefferies.
- “That seems to be the Achilles heel for the ASEAN economies at the moment,” he said referring to Association of Southeast Asian Nations regional grouping.
- Goldman Sachs recently slashed its 2021 growth forecasts for major economies in Southeast Asia as a surge in the more infectious delta variant triggered daily record highs in infections in Indonesia, Malaysia and Thailand these past weeks.
- Indonesia’s credit rating under pressureThe surge in infections regionally has also called into question the credit ratings of South East Asia’s economies.
- “A resurgence in more infectious mutations of the virus poses significant risks to Indonesia’s economic recovery,” Moody’s said in the report.
- Sean DarbyJefferiesDarby said Indonesia’s situation has to be put into context: The country’s balance of payments position is “actually very good,” he said, adding that its foreign exchange reserves are near record highs.