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Auto rebound unlikely to last, new currency forecasts

Automotive production across Asia, which was badly hit during the pandemic by a shortage of semiconductor components, is now rebounding rapidly as this constraint unwinds. This is providing a boost to the region’s two main automotive hubs, Korea and Thailand. However, we suspect that the recovery will start to unwind in the second half of the year, as high interest rates and weaker global growth weigh on vehicle sales.

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