As the sun set on the first seven months of 2023, the Asia-Pacific (APAC) region saw a 20.4% year-on-year (YoY) decline in deals (mergers & acquisitions (M&A), private equity (PE), and venture financing), mirroring global trends. Economic uncertainties and geopolitical undercurrents have woven a fabric of decline, with key markets such as China, India, and Japan experiencing setbacks, reveals GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database reveals that 8,457 deals were announced during January-July 2023 compared to 10,626 during the same period in 2022.

All the deal types under coverage witnessed YoY decline in deal volume. The number of M&A, PE and venture financing deals announced in the region declined by 10.9%, 7.8% and 28.7%, respectively, during January-July 2023.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Mirroring the global trends, the Asia-Pacific region’s deal landscape paints a subdued picture. As economic uncertainties interlace with geopolitical currents, key markets including China, India, and Japan grapple with setbacks, vividly illustrating the intricate interplay of economic drivers and regional complexities.”

China, which is the top APAC market by deal volume, witnessed a 13.3% drop in deal volume from 3,215 during January-July 2022 to 2,787 during January-July 2023.

Several other APAC markets also suffered setback in deal activity. For instance, India, Japan, Australia, South Korea, Singapore, Hong Kong, Indonesia and New Zealand witnessed respective deal volume decline by 30.9%, 14.8%, 21.2%, 31.9%, 22.9%, 19.8%, 40.4% and 23.4%.

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