Each month Frontier Strategy Group releases monthly market reports to its clients. These concise, executive-friendly reports highlight key developments and market trends in a particular region.
Inflation continues to be a concern in July for most countries in the Asia Pacific region, although its magnitude and impact differ across markets. In Indonesia and the Philippines, inflation seems to be under control; in India and Bangladesh, rapidly rising consumer prices threaten to accelerate; and in Vietnam, soaring inflation is eroding available income and undermining consumer spending, starting to fuel labor strikes.
Other insights from this month’s report include:
- Bangladesh: Multinationals should monitor Bangladesh’s budgetary spending, as it will impact the country’s ability to support substantial industrial development
- Cambodia: Shortages of skilled workers may create a drag on Cambodia’s rapid growth in the coming years
- China: The Chinese government is becoming more assertive in promoting national interest and guiding development in key industries
- India: Multinationals should plan for inflationary pressures in India to remain strong for at least another year
- Indonesia: Consumer confidence will remain steady this year as long as inflation doesn’t spiral out of control
- Japan: Funding Japan’s recovery may become increasingly difficult as future budget packages reopen political rifts within and between parties
- Pakistan: Efforts to boost economic development in Pakistan will be marred by worsening relations with the US
- Philippines: Recent moves by the Aquino administration suggest that it is serious about reducing waste and fighting corruption
- Thailand: Companies that have not already done so should make contingency plans for further unrest and the possibility of a coup d’état
- Vietnam: If Hanoi does not bring inflation under control soon, strikes will multiply, wages will rise, and FDI will drop
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