Investment Perspectives: Asia Pacific Overview
Economic reviews of Asia Pacific typically lead with the outlook for China. Hines believes there is much more to the regional story in 2024 and beyond.
With shifts in global inflation dynamics, nominal GDP growth in developed Asia has ramped up, perhaps most surprisingly in Japan. The shift from globalization to “slowbalization” has likely yielded significant benefits for the country. For over 20 years, input costs in manufacturing centers such as the U.S. and Germany have steadily increased – since 1999, the U.S. Producer Price Index (PPI) has nearly doubled, and its German counterpart is up over 70%1.
With economic fundamentals on a positive trajectory, Hines believes there will be improved nominal GDP growth in coming years, with gradual reflation positive for real estate rents.
1 CEIC, OECD, Hines Research as of Q4 2022 using annual data.
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