제 18 호 26th ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting
Kicker: WORLD
26th ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting
by Si-ho Park, Cub-reporter
East Asian countries - some ASEAN countries and other three countries of Korea, Japan, and China - are cooperating through the community of ASEAN+3. The 26th ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting was held on May 2nd, 2023. At the meeting, the global economic situation, and the direction that Asian countries should take were comprehensively dealt with. Therefore, by understanding the contents of this meeting, we will be able to understand the international economy in general.
About ASEAN+3
The Association of Southeast Asian Nations, or ASEAN, is a political and economic union of 10 member states in Southeast Asia: Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao People’s Democratic Republic, Myanmar, and Cambodia. They established ASEAN in 1967 to promote regional economic development and peace.
ASEAN Plus Three (APT) consists of ten ASEAN Member States and the Republic of Korea, the People’s Republic of China, and Japan. The APT Cooperation process began in December 1997 and since then has evolved as the main vehicle to promote East Asian Cooperation towards the long-term goal of building an East Asian Community, with ASEAN as the driving force. The APT has become one of the most comprehensive cooperation frameworks in the region, and APT cooperation continues to be broadened and deepened in a wide range of areas, including political-security, trade and investment, finance, energy, tourism, agriculture and forestry, environment, education, health, culture and arts, and others.
The 26th ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting
The meeting was held on May 2, 2023, in person for the first time since the COVID-19 pandemic. All member countries’ finance ministers and central bank governors were gathered, and the president of the Asian Development Bank (ADB), the Director of the ASEAN+3 Macroeconomic Research Office (AMRO), the Deputy Secretary-General of ASEAN Secretariat, and the Deputy Managing Director of the International Monetary Fund (IMF) were also present at the meeting.
They exchanged views on current developments and the outlook for the global and regional economies, as well as policy responses to risks and challenges. The ASEAN+3 financial cooperation has played an increasingly essential role in supporting regional economies to address risks and challenges.
https://aseanplusthree.asean.org
Recent Economic and Financial Developments in the Region
The ASEAN+3 economies grew by 3.2 percent in 2022, despite the impacts of the COVID-19 pandemic and the Russia-Ukraine conflict which escalated into a crisis. The inflation rate rose to a record high worldwide, and the recent banking sector turmoil in the US and Europe has also brought chaos to the global economy. The ongoing Russia-Ukraine conflict has triggered tighter financial conditions, in addition to supply chain disruptions and higher global commodity prices. As uncertainty in the economic situation increases due to the various crisis situations, regional cooperation has been more emphasized recently.
They also had a discussion to utilize the key emerging sectors such as the green and digital economies, and promote strong, resilient, and sustainable financial growth. They found the need to collaborate towards a strong and inclusive recovery and make continued progress for sustainable development, to make stronger, greener, more resilient, and better balanced global development.
The meeting affirmed the strong commitment to the open, free, and fair trading system with the World Trade Organization (WTO) at its core. The member countries supported an enhanced regional economic integration and the implementation of the Regional Comprehensive Economic Partnership (RCEP) Agreement.
ASEAN+3 finance ministers and central bank governors also decided to strengthen regional cooperationthrough the future direction of the Regional Financial Agreement (RFA), the Chiang Mai Initiative Multilateralization (CMIM), and the Regional Macroeconomic Research Organization (AMRO). Amid the recent world situation, which has seen various rapid changes and increased uncertainty, we should reconsider the need for regional cooperation. In particular, cooperation in the ASEAN region, where growth is significant, will be more emphasized. The ASEAN+3 is expected to grow by 4.6 percent in 2023, with strong domestic demand and the economic recovery from COVID-19. I also hope this article to be an opportunity for you to think about the direction of future cooperation.
Sources:
https://aseanplusthree.asean.org
https://n.news.naver.com/article/001/0013917725?sid=104
http://www.businesskorea.co.kr/news/articleView.html?idxno=113982
