ASEAN+3 growth for 2023 was projected at a decline from 4.6 per cent to 4.3 per cent. Most countries of the ASEAN+3 group are anticipated to have negative economic growth. Moreover, inflation for the ASEAN+3 region was slashed from 6.3 per cent in 2022 to 4.5 per cent in 2023 and for ASEAN from 7.7 per cent in 2022 to 5.4 per cent in 2023, local media reports said quoting AMRO.

Vietnam’s GDP growth has been revised upward to 6.8 per cent from 6.5 per cent, as per the ASEAN+3 Macroeconomic Research Office (AMRO)’s latest update. While Vietnam’s economy was forecasted to grow by 8 per cent in 2022, the country’s inflation is projected to arrive at 3 per cent in 2023—again a decline from 3.2 per cent in the earlier update.

The 2023 growth outlook for ASEAN was reduced from 4.9 per cent to 4.8 per cent compared to 5.6 per cent growth in 2022. The expected economic decline of ASEAN+3 countries has been attributed to the persistent fragility of the Plus-3 economies, particularly China. The economy of China is projected to grow by 5 per cent in 2023 compared to the 5.3 per cent estimate in October.

“With recession risks still haunting the United States and Europe, China’s economic reopening cannot come at a better time for the region,” said AMRO chief economist Hoe Ee Khor. “China’s stronger economy will support regional activity while the border reopening will boost intraregional tourism.”

Fibre2Fashion News Desk (NB)