Under the co-chair of Indonesia and Japan, deputy ministers of finance and deputy governors of ASEAN+3 central banks discussed the regional macro economic situation and the pace of the implementation of the financial cooperation initiatives.
Regarding regional macroeconomics, the ASEAN+3 Macroeconomic Research Office (AMRO) assessed that economic growth in the ASEAN+3 region in 2022 recorded a recovery after the COVID-19 period, mainly from increased domestic demand.
Regional growth is estimated at 3.2%, of which China, Japan and the Republic of Korea (RoK) achieved 2.6% and ASEAN member states at 5.6%.
In 2023, the region continues to face geopolitical risks, inflationary pressures and disruptions to global supply chains. However, China's recovery could provide an impetus for overall growth in the region.
AMRO has forecast regional growth in 2023 will reach 4.4% (higher than the 3.2% in 2022), of which China, Japan and RoK’s growth rates were forecast at 4.4% and ASEAN at 4. 6%.
Notably, China's growth is forecast to reach 5.3%, the highest among the three countries, while Vietnam will have the best growth in the ASEAN region with a rate of 6.2%. AMRO has recommended that countries continue to implement tight monetary policies to control inflation and stabilize the macroeconomy.
The conference updated the operational status of the Asian Bond Development Market Initiative (ABMI), one of the two pillars of ASEAN+3.
Delegates spoke highly of the efforts by ABMI working groups in encouraging the development of the local currency bond market through measures to promote the supply and demand of bonds in local currency, strengthening the legal framework, improving infrastructure and providing technical assistance to countries to develop domestic bond markets.
The outcomes of the meeting will be reported to the ASEAN+3 Finance Ministers and Central Bank Governors Meeting which is scheduled for early May in the RoK.
Source: VNA