Southeast Asia’s GDP growth and FDI now surpass China’s. China-Philippines tensions rose after a ship collision, Ukraine targeted Russian supply lines, Canada’s rail network faces a labor shutdown, and Libya’s central bank closed after a director's kidnapping.
Southeast Asia Set to Outpace China in GDP Growth and FDI
A report, Southeast Asia Outlook 2024-2034, projects that Southeast Asia’s GDP will grow at an average rate of 5.1% annually over the next decade, surpassing China’s anticipated growth of 3.5-4.5%.
Vietnam and the Philippines are expected to lead with 6.6% and 6.1% growth rates, respectively, while Singapore is projected to grow at 2.5%.
In 2023, foreign direct investments (FDI) into six Southeast Asian economies totaled $206 billion, outpacing China’s $42.7 billion for the first time in a decade.
The report highlights the region’s rising appeal to foreign investors, with Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam as key growth drivers.
South China Sea Tensions Escalate as China-Philippines Ships Collide
Chinese and Philippine coast guard vessels collided in the disputed Spratly Islands area, with both countries accusing each other of unsafe actions.
The Philippines stated that China engaged in “unlawful and aggressive maneuvers,” while China claimed Filipino vessels ignored warnings and maneuvered dangerously.
The collision underscores ongoing territorial disputes in the South China Sea, where both nations lay claim to the Spratly Islands.
Ukraine Destroys Key Bridge in Russia’s Kursk Region to Block Supplies
Ukraine’s air force targeted a second bridge in Russia’s Kursk region to disrupt supply lines for Russian forces countering Ukraine’s recent border incursion.
Ukrainian President Volodymyr Zelensky stated that Ukrainian troops are “strengthening” and “expanding” their positions in Russian-held areas.
The destruction of key infrastructure marks a strategic move by Ukraine to hinder Russian military logistics in the region.
Libya’s central bank halted operations after Musab Msallem, its IT director, was abducted from his home.
The bank announced it would remain closed until Msallem is released, adding to recent turmoil after armed men reportedly besieged the bank demanding the governor’s resignation.
The incident highlights the challenges facing Libya’s financial sector amid ongoing instability and security concerns.
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