ASEAN+3 Regional Economic Outlook 2023

The seventh issue of the ASEAN+3 Regional Economic Outlook (AREO 2023) provides AMRO staff’s comprehensive assessment of conjunctural and structural issues in the 10 members of the Association of Southeast Asian Nations (ASEAN) and China; Hong Kong, China; Japan; and Korea.

The post-pandemic “recovery” year of 2022 was beset by new challenges as the ASEAN+3 region was buffeted by multiple external shocks. Overall, the ASEAN+3 region grew at 3.2 percent in 2022. The lifting of COVID-19 containment measures led to a surge in consumer spending and investment. Meanwhile, inflation in the region rose to 6.5 percent in 2022, due mainly to supply disruptions caused by the Ukraine crisis, the release of pent-up demand in advanced economies, and the lingering impact of supply chain bottlenecks. Looking ahead, growth in ASEAN+3 is fraught with uncertainties and a calibrated policy mix is essential to navigate the challenges that 2023 will bring. Chapter 1 of AREO 2023 covers key macroeconomic developments in the ASEAN+3 region and assesses the risks to the outlook.

Climate change mitigation is among the most critical issues to confront policymakers around the world. The global commitment under the Paris Agreement of 2015 to reduce the Earth’s temperature increase to well below 2 degrees Celsius carries significant long-term growth consequences for the ASEAN+3 region, which itself is home to some of the world’s largest emitters of greenhouse gases. Chapter 2 of the report focuses on climate change mitigation and transitioning to net zero, and the implications for the long-term macroeconomic and financial development of the ASEAN+3 region as a whole.