current
Supply Chain Diversification
Emerging markets, particularly Southeast Asia, are benefiting from supply chain diversification, driven by improved cost competitiveness.
Timeframe
long-term
Categories
Subcategories
Impact areas
Detailed Analysis
Emerging markets are experiencing a boost from ongoing supply chain diversification efforts. "Emerging markets stand to benefit from supply-chain diversification. Cost competitiveness has improved almost everywhere since 2015, apart from Central and Eastern Europe." Southeast Asia is particularly well-positioned to attract investment due to its improved cost competitiveness. This shift is driven by businesses seeking to reduce reliance on single sourcing and mitigate geopolitical risks. Resilient domestic demand in emerging markets is expected to further support GDP growth into 2025, although it is projected to remain below pre-crisis levels.
Context Signals
Improved cost competitiveness in Southeast Asia
Businesses seeking to mitigate geopolitical risks
Resilient domestic demand in emerging markets
Edge
Southeast Asia could become a major hub for manufacturing and logistics.
New investment opportunities will emerge in infrastructure and technology in these regions.
The diversification trend could lead to a more balanced and resilient global economy.
