Caribbean Export OUTLOOK 3rd Edition

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Trade & Export Hot Spots

T he Association of Southeast Asian Nations (ASEAN) recently celebrated their 50 th year as an intergovernmental community focused on building a strong and united region. Composed of ten (10) countries, Southeast Asia is made up of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. With a population base of about 640 million in 2016, and an economic market that runs over $2.6 trillion, the ASEAN Economic Community is collectively the seventh largest economy in the world. The ASEAN’s increasingly powerful role in global and economic affairs has catapulted it as a prime export market for goods and services from the Caribbean region. Regional GDP was forecasted by the Organisation for Economic Co-operation and Development (OECD) in 2017 to grow by 6.4% thanks in part to the trade rebound and strong domestic consumption. According to the OECD’s Medium-term Projection Framework (MPF-2018), it is projected growth will be 6.3% during 2018-2022. According to JPMorgan Chase &Co., “as the economies of neighboring China and India decelerate, and as the United States shifts its focus to the East, (ASEAN) is increasingly becoming a destination for investment.” The investment firm goes on to reveal that “$5.3 trillion of global trade passes through the ASEAN’s waterways each year. The ASEAN is the United States’ third largest Asian trading partner, and the largest Asian destination for US investment. It also receives the largest chunk of outgoing investment from the European Union, at 24%. At current growth rates, ASEAN should become the fourth-largest market after the EU, US and China by 2030, supported by an increasingly well-educated workforce, abundant natural resources and favorable geographic location.” This upward progress is most evident in the ASEAN-5 or Indonesia, Malaysia, Philippines, Thailand and Vietnam. The rising middle-income class and expanding number of high-net worth families have seen the gain in luxury spending and continued boom of the real estate market. Identified Growth Sectors There are numerous sectors where opportunities in Southeast Asia abound and where Caribbean countries can participate. The regional airline industry’s move towards an ASEAN Single Aviation Market is boosting infrastructure investment and aviation development plans in the region. The growth has been attributed to the proliferation of low-cost carriers and the increasing demand for flights not only within the region but intercontinental flying as well. Boeing forecasts that Southeast Asian airlines combined will acquire 2,750 new airliners in the next 20 years. The company projects that Southeast