Asia-Pacific (APAC) has not been immune from the global macroeconomic headwinds that built steadily throughout 2022. Now, the region is also experiencing rising inflation and tightening monetary policy. Deal volumes for 2022 were significantly down from the record peaks of 2021, returning to pre-pandemic levels.
2022 was a rather subdued year for M&A activity in APAC, as deal volumes decreased by 31% Y-o-Y (aggregated US $910bn), and the number of deals from APAC accounted for just 30% of total global M&A (lowest compared to Americas and EMEA). In addition, a decline in deal volumes in China (down 30% Y-o-Y) and Australia (down 60% Y-o-Y) significantly weighed on the overall growth.
Macroeconomic uncertainty will persist in 2023, yet deals will still get executed. Despite following global trends generally, APAC’s vast and diverse markets still have certain individual characteristics that set them apart. As a result, amidst all the uncertainty, investors have a lot of cautious optimism for 2023.