Asean Plus Three is forecast to grow 4.6 percent in 2023

The Asean Plus Three region is expected to grow by 4.6 percent in 2023, said the finance ministers and central bankers of the nations in statement Tuesday.

Finance ministers and central bank governors from the Asean Plus Three region pose for a photo at a hotel in Incheon during the Asia Development Bank meeting Tuesday.

The Asean Plus Three region is expected to grow by 4.6 percent in 2023, said the finance ministers and central bankers of the nations in statement Tuesday.

This growth will be led by “robust domestic demand as the economic recovery gains traction,” read the statement, which was issued during a meeting of the Asia Development Bank (ADB) that opened in Incheon on Tuesday.

“Tighter financial conditions, in addition to supply chain disruptions and higher global commodity prices aggravated by the ongoing Russia-Ukraine conflict, pose downside risks to the outlook for the regional economy. While the recent banking sector turmoil in the U.S. and Europe has had limited direct spillovers for the region,” read the statement.

The financial chiefs noted the importance of “closer intra-regional cooperation” in the areas of trade, investment and supply chain logistics. Digital integration and sustainable and green infrastructure were also mentioned as the areas of cooperation that will enhance the region’s ability to secure post-pandemic growth, minimize scarring effects and prepare for future shocks.

“The Meeting fully supports the implementation of the Regional Comprehensive Economic Partnership Agreement,” the statement added.

Strengthening the regional financing arrangement, like the Chiang Mai Initiative Multilateralization (CMIM), was also noted as a means to minimize the impacts of future uncertainty.

CMIM is a multilateral currency swap arrangement for liquidity support among Asean Plus Three members, established at $120 billion.

BY JIN MIN-JI [jin.minji@joongang.co.kr