Setting a rapid ASEAN pace

ASEAN

The ASEAN region's high pace of growth means many of its equity markets are undervalued. Camille Vergara fund manager of the GAM Star Emerging Asia Equities fund, explains why the area could be an even more attractive prospect than China 15 years ago.

The situation in Southeast Asia is more or less comparable to China 15 or 20 years ago except that current growth in Southeast Asia is much more dynamic. In the fourth quarter of 2012 alone, the average economic growth of the ten ASEAN countries (see box below) was 6.5% year-on-year while inflation largely remains in check. By way of comparison, over the same period the economy in the eurozone contracted by 0.9%. In addition, the incipient recovery in the US economy and the drastic monetary easing by the Bank of Japan (BoJ) is giving Southeast Asia additional momentum. The US economic re...