Bright Prospects for ASEAN+3 Amid Uncertainty

The ASEAN+3 region remained resilient in a challenging global landscape in 2023. Growth momentum is expected to remain favorable in 2024 and 2025, with robust domestic demand and exports forecast to turn around. While external headwinds could weigh on growth, the baseline positive outlook offers the region a good opportunity to rebuild policy space lost since the COVID-19 pandemic.

Despite a challenging global economy, ASEAN+3 registered a growth of 4.3 percent in 2023, a significant increase from 3.2 percent in 2022.

Domestic demand underpinned growth, with robust consumer spending spurred by improving labor market conditions and moderating inflation. Investment activities saw some tentative pickup toward the end of the year. Exports, however, remained weak following lackluster global demand.

This year, the ASEAN+3 region is expected to grow at a faster rate of 4.5 percent before moderating slightly to 4.2 percent in 2025 (Figure 1). Growth would be lifted by the turnaround in exports, while domestic demand is expected to remain robust.
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