The Asia-Pacific (APAC) region saw a 20.4% year-on-year (YoY) decline in deals in the first seven months of 2023 due to economic uncertainties and geopolitical undercurrents, said GlobalData, a London-based data and analytics company.

The deals include mergers & acquisitions (M&A), private equity (PE), and venture financing.

A total of 8,457 deals were concluded between January and July 2023, compared to 10,626 a year ago.

All the deal types under coverage witnessed an annual decline. The number of M&A, PE and venture financing deals fell by 10.9%, 7.8% and 28.7%, respectively.

“Mirroring the global trends, the Asia-Pacific region’s deal landscape paints a subdued picture,” said Aurojyoti Bose, Lead Analyst at GlobalData.

As economic uncertainties interlace with geopolitical currents, key markets, including China, India, and Japan, grapple with setbacks, illustrating the intricate interplay of economic drivers and regional complexities, he added.

China, the top APAC market by deal volume, witnessed a 13.3% drop from 3,215 in January-July 2022 to 2,787 a year earlier.

India, Japan, Australia, South Korea, Singapore, Hong Kong, Indonesia and New Zealand witnessed deal volume decline by 30.9%, 14.8%, 21.2%, 31.9%, 22.9%, 19.8%, 40.4% and 23.4%, respectively. 

“As businesses and investors navigate and recalibrate amid the economic complexities and geopolitical dynamics, the path ahead demands a nuanced understanding of these intricacies for a more resilient future,” Bose stated.   

 (Editing by Seban Scaria seban.scaria@lseg.com)