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Macro Economy•30 June 2026•

1 min read

Asia's consumer recovery: widening gap between leaders and laggards

Key Facts

1Consumption in Asia is recovering unevenly as the gap widens between leaders like Japan, Australia, Singapore, India and slower ASEAN economies.

As global inflation eases and asset prices rise, consumer spending in Asia is recovering but at an uneven pace, according to an ING analysis. The gap is widening between leading economies such as Japan, Australia, Singapore, and India and slower ASEAN economies. Analysts attribute the divergence to structural factors including savings rates and income drivers that vary significantly across these markets.

Recent data supports this assessment: Australia's inflation slowed to 4% YoY in May (per June 24 data), while Singapore's CPI held steady at 1.8% in May (June 23 data). Australia's labor market also showed strength, adding 40.3 thousand jobs in June, underpinning spending power in one of the leading economies. In contrast, ASEAN economies face structural headwinds such as lower real income and weak consumer confidence, with no near-term catalysts to narrow the gap.

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