October’s Update of the ASEAN+3 Regional Economic Outlook: Five Key Takeaways

The ASEAN+3 region is forecast to grow by 4.3 percent this year, down from July’s projection of 4.6 percent, due mainly to the weaker-than-expected growth in China. Despite the anticipated weakness in the global economy next year, the region’s growth is forecast to remain robust at 4.5 percent, in view of the expected turnaround in trade and improving growth momentum in China.

Here are five key takeaways for the region’s outlook, as seen in AMRO’s latest ASEAN+3 Regional Economic Outlook.

1. Domestic demand remains the main growth engine for the region. Recovery in the labor market and improving household incomes continued to support private consumption. Sectors such as retail trade and food and beverage have benefited from a resurgence in travel and tourism. China’s economic recovery has not been as strong as initially expected, primarily due to ongoing weakness in the property sector, which has dampened both investment and consumer sentiment.

Nonetheless, there are signs of recovery in investment and manufacturing outside the real estate sector, which should be further boosted by recent policy support measures.
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