Business & Economy

ASEAN+3 agree for greater economic cooperation amid uncertainty

Seoul, May 2 (EFE).- The financial authorities of the Association of Southeast Asian Nations, plus South Korea, Japan and China (ASEAN+3) agreed Tuesday on the need to improve their collaboration and financial safety nets after the crisis in the United States and Europe, despite its limited effect on the region so far.

At a meeting in the South Korean city of Incheon, near Seoul, the participating countries pledged to strengthen regional economic cooperation through various platforms, among them the Chiang Mai Initiative.

Tuesday’s meeting took place on the sidelines of the 56th annual meeting of the board of governors of the Asian Development Bank and also addressed issues such as the risks posed by the war in Ukraine, and the rising cost of raw materials for regional economic development.

The group agreed that financial cooperation between them has played an increasingly essential role in supporting regional economies to address global risks and challenges, and underlined the need to enhance it, according to the joint statement published at the end of the meeting.

The economies of the ASEAN+3 countries grew by 3.2 percent in 2022 despite the prolonged impact of the Covid-19 pandemic and the war in Ukraine.

Its members stressed that even though inflation reached historic highs, it has been contained in general terms compared to other regions.

The group also spoke about greater inter-regional cooperation to ensure post-pandemic growth and prepare for possible future setbacks.

In this regard, the focus was on boosting commerce and investment, logistics and resilience of supply chains, interconnectivity of customs systems, cross-border flows, the creation of sustainable and green infrastructure, and digital integration.

The meeting also discussed creating a system to facilitate rapid finance, allowing members to access funding to meet urgent balance-of-payments needs arising from sudden exogenous shocks, such as pandemics and natural disasters.

The ASEAN is made up of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand, Singapore and Vietnam. EFE.


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