Southeast Asian countries could see additional constraints from dampened remittance inflows, greater unemployment, and other spillover impacts from the Middle East war, Nikkei Asia said in a Thursday release.
These pressures will add up to already rising energy prices and currency depreciation due to the conflict, the report said.
Among the region's economies, the Philippines could be impacted the most as it is the largest source of migrant workers to the Middle East, reaching 1.1 million in January, according to the report.
About 8.7% of the Philippines' 2024 GDP is attributed to remittances, the report cited World Bank data as saying.
Remittances from overseas Filipino workers reached $2.8 billion in February, but this is expected to decline in March, according to the report.
The country has repatriated about 4,200 workers from the Middle East since early March, with Thailand, Indonesia, and Singapore also doing similar actions for their citizens, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)