China a positive economic force in ASEAN+3 region, economists say

Regional cooperation is becoming increasingly important in a world full of uncertainties, and China is a positive force in ASEAN+3 to stabilize its economic growth, according to a new report by the ASEAN+3 Macroeconomic Research Office (AMRO).

"The ASEAN+3 region has seen its growth punctuated by tightening global financial conditions, geopolitical tensions, scarring effects of COVID and climate change … it is vital for us to work together and grow together," said Li Kouqing, director of AMRO, at a forum held at the Shanghai National Accounting Institute on Friday.

The Association of Southeast Asian Nations (ASEAN), founded in 1967, groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. And ASEAN+3 includes member states plus China, Japan and South Korea.

Hoe Ee Khor, chief economist at AMRO, said China's economy is expected to rebound strongly this year after the country revised its COVID policies at the end of 2022.

He expected China's economy to grow 5.5 percent this year, basically in line with the forecast of institutions such as IMF and the World Bank, both of which raised their anticipated rates for China recently.

In the first quarter, China's economic growth tipped to 4.5 percent, with the pace picking up in recent months thanks to robust demand of consumption and services like tourism.

"The region must stay united and pull together to secure its macroeconomic and financial resilience and stability," he said.

Mo Wangui, deputy director general at the Research Institute of the People's Bank of China, said that China has been an exception to surging inflation around the world, but it has to be vigilant over imported inflation and guard against a slowdown in trade.

He also advised efforts to facilitate cross-region partnership.

The flagship publication ASEAN+3 Regional Economic Outlook was released at the forum.