# ASEAN+3 region is projected to grow by 4.2% in 2024 and 4.4% in 2025

- Link: https://www.thailand-business-news.com/asean/167190-asean3-region-is-projected-to-grow-by-4-2-in-2024-and-4-4-in-2025
- Published: 2024-10-08T01:58:53+07:00
- Author: News Desk

**The ASEAN+3 region is projected to grow by 4.2% in 2024 and 4.4% in 2025, driven
by recovery in trade, tourism, and strong domestic demand.**

The ASEAN+3 economies are projected to show strong economic performance despite 
growing external uncertainties. In the recently released October 2024 update of 
the ASEAN+3 Regional Economic Outlook (AREO), the ASEAN+3 Macroeconomic Research
Office (AMRO) forecasts a growth rate of 4.2 percent for the region in 2024, with
a slight increase to 4.4 percent anticipated in 2025. This optimistic outlook highlights
the region’s resilience amid global challenges.

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## Key Growth Drivers

A significant factor contributing to the robust growth of the ASEAN+3 economies 
is the ongoing recovery in external trade and tourism. These sectors have shown 
remarkable resilience, aiding in the region’s economic expansion. Moreover, domestic
demand remains solid, further bolstering growth prospects by supporting various 
local industries. This dual focus on external recovery and internal strengths positions
the region well for continued economic success.

## Tourism and Trade Resilience

The resilience in the trade sector and the revival of tourism activities have emerged
as pivotal elements driving the economic momentum within the ASEAN+3 region. Despite
external challenges, these sectors are expected to continue their positive trajectory,
contributing significantly to the region’s overall economic health. This scenario
reflects the adaptive and dynamic nature of the ASEAN+3 economies in navigating 
global uncertainties while fostering sustainable growth.

## ASEAN+3 Region Projected Economic Growth

The ASEAN+3 region, a dynamic and diverse group of countries, is projected to continue
its trajectory of solid economic growth despite the challenges posed by external
uncertainties. According to the ASEAN+3 Macroeconomic Research Office (AMRO), the
region is expected to grow at 4.2 percent in 2024 and see a slight improvement to
4.4 percent in 2025.

This positive outlook is underpinned by robust domestic demand, with additional 
support from the anticipated turnaround in exports and the continued recovery of
tourism. Inflation, which has been a concern for economies worldwide, is expected
to moderate within the ASEAN+3, excluding Lao PDR and Myanmar, from 2.8 percent 
last year to 2.5 percent in 2024, and further easing to 2.3 percent in 2025.

The region’s resilience is noteworthy, especially considering the aggressive monetary
policy tightening by central banks globally to combat high inflation, which has 
led to financial market volatility. Despite these headwinds, the ASEAN+3 region’s
growth remained resilient at 4.3 percent in 2023, and the momentum is expected to
stay favorable.

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Looking ahead, the ASEAN+3 region faces the challenge of navigating major global
shifts such as aging populations, global trade reconfiguration, and rapid technological
change. These trends present both risks and opportunities for long-term growth. 
The region’s ability to manage these risks while capitalizing on growth opportunities
will be crucial for its future economic trajectory.

Investment in productive sectors and strengthening regional cooperation are among
the strategies suggested to reignite growth and enhance resilience. This approach
would allow the ASEAN+3 to remain a bright spot amidst an increasingly complex global
economy.

For countries like Brunei, the GDP growth projection of four percent by AMRO reflects
the nation’s economic stability and potential for growth within the region. Meanwhile,
adjustments in growth expectations for China and Vietnam have led to a slight downward
revision for the region’s overall forecast, highlighting the interconnected nature
of the ASEAN+3 economies.

The ASEAN+3’s journey is a testament to the region’s enduring spirit of cooperation
and collective ambition. As it stands on the cusp of further economic development,
the ASEAN+3 region continues to be a beacon of growth and stability in an ever-evolving
global landscape.

For more detailed insights and the full economic outlook, you can explore the comprehensive
reports provided by AMRO.

Source: [ASEAN+3 Macroeconomic Research Office ](https://amro-asia.org/quarterly-update-of-the-asean3-regional-economic-outlook-areo-october-2024)