Goldman Sachs Expects Thailand, Hong Kong to Benefit Most from China Reopening

Goldman Sachs predicts that Hong Kong, Thailand, and Singapore would reap the most benefits from China lifting the Covid-19 restrictions and reopening its economy, which will increase demand for imports and overseas tourism.

A rise in exports and tourism revenue may add an additional 7.6% to Hong Kong’s GDP. Meanwhile, Goldman Sachs economists predict a 2.9% increase in Thailand’s GDP.

There will be a smaller effect on Singapore (1.2%), followed by Malaysia (0.7%), said Goldman.

Economists Hui Shan and Goohoon Kwon from Goldman Sachs stated in a note published on Sunday that China’s ongoing reopening will enhance domestic demand by 5 percentage points and push overseas travel back to 2019 levels.

“China’s reopening is likely to have the most positive effect on international travel followed by stronger goods imports,” they said.

According to Goldman, Hong Kong will likely see a 6% increase in travel spending, while Thailand will see a 3% gain.