A steel pipe factory in Shandong province, China (Photo: AFP/VNA) Hanoi (VNA) - Finance ministers and central bank governors of memberstates of the Association of Southeast Asian Nations (ASEAN) and East Asiancountries on May 4 discussed the threat of trade frictions and risingprotectionism and pledged to stay vigilant and work harder to avert threats tothe global economy.
In a statement after the meeting of the ASEAN+3 on the sidelines of theannual Asian Development Bank (ADB) meeting in Manila, the Philippines,representatives of the 13 countries said protectionism, geopolitical tensionsand a faster-than-expected tightening in global financial conditions wereadding to uncertainty about recovery.
These risks, individually or collectively, threaten the recovery in theglobal economy, and could induce large capital outflow and financial volatilityin our region, they said.
The ASEAN+3 includes 10 ASEAN member nations, namely Brunei, Cambodia, Indonesia,Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, andthree East Asian countries - Japan, China and the Republic of Korea.
In a report released on May 3 by the ASEAN+3 Macroeconomic ResearchOffice (AMRO), the economy of the ASEAN 3 region is projected to grow 5.4percent in 2018, underpinned by resilient domestic demand and export growthwith stable inflation.
The report, titled “ASEAN+3 Regional Economic Outlook (AREO) 2018,”predicts a robust growth this year in China and Japan, the region's two largesteconomies.
With improving external demand, growth in the region is expected to besustained at 5.4 percent for 2018 and 5.2 percent for 2019, according to thereport.
The report said improving external demand has allowed the region tobuild up buffers further against potential external shocks. Regional exchangerates have become more flexible in recent years, and have played a greater roleas a shock absorber.
To enhance resilience, the report said policymakers in the region shouldcontinue to build policy space, particularly in monetary policy, inanticipation of tighter global financial conditions ahead.
Fiscal policy may have to play a greater role in supporting growth whilemacro-prudential policy can help safeguard financial stability, the reportsaid.-VNA
VNA
