How Can The Messy Middle of AgriFood Trade Recover in The Coronavirus Crisis
November 10, 2020
Article Courtesy of Dimuto
Covid19 has devastated economies around the world, and many countries are still reeling from devastating impacts. While, there are stark differences between government response and recovery rates in the US, Europe, and Asia, the likely winners will be countries that manage to establish some form of new normal while keeping infection rates low and stable.
Currently, indicators have shown that China will likely be the first major economy to pull out of the global coronavirus crisis and it seems ASEAN countries like Thailand, Malaysia and Singapore are likely to see recovery in Q1 2021, barring containment of the virus.
Furthermore, with 18.8% of exports in Southeast Asia going to the world’s second-largest economy, China’s recovering economy is positive news for the region. Coupled with its strategic location and 5.3 trillion worth of global trade passing through annually, it is not surprising then that many companies are looking to Southeast Asia to do business, according to McKinsey. By 2030, Southeast Asia is expected to become the fourth largest single market in the world – putting it behind only the US, China and the European Union.
Given the current outlook, companies would definitely want to look towards Southeast Asia and the greater Asia region.
Read more to out what does this mean for the global agrifood trade landscape.