Mastercard Economics Institute: Consumer Spending in Asia Pacific Remains Strong, Despite Rising Costs

Amidst an ever-changing and unprecedented global economy, the choices consumers make in what, where and when they spend today may help reveal where we are headed next. The Mastercard Economics Institute’s “Shifting Wallets” report looks at how consumers across the world are holding tight to habits that offer convenience, experience or both.

Asia Pacific has seen a sharp recovery in outbound travel following the re-opening of borders, despite the growing cost of air travel. This is notable in markets like Singapore and Australia, with strong demand persisting even beyond the initial loosening of restrictions. Equally, spending on experiences is continuing to exceed spending on things, reflected in the spending patterns for experiences including dining out or entertainment. Asia Pacific consumers are ordering from restaurants – both in-person or online – over making their own meals at home, with spending on restaurants up 16% in August 2022 from January 2022 levels, whilst grocery spending is down 5%. 

“Consumers in Asia Pacific are looking to make up for lost time after a challenging few years,” said David Mann, Chief Economist of Mastercard AP & MEA. “The pent-up demand to see new places and experience new things is influencing consumer spend in a big way. With the ongoing prioritization of getaways, dining, entertainment, and experiences, we are expecting to see even more rebound in the travel and entertainment sectors.”

He added, “In addition, we’re seeing new opportunities for online businesses, as both goods and experiences spending shifts away from the weekends. As digital shopping and remote work continue to influence our daily habits, consumers will adjust and re-adjust their spending preferences to match the changing rhythm of our lives.”

H.N (Vietnam Business Forum)