China’s reopening should provide a timely boost to the Asean+3 region as the area’s economic growth was downgraded because of continuing weakness in China, Japan and South Korea, according to economists.
In its January update, the Singapore-based Asean+3 Macroeconomic Research Office (Amro) trimmed Asean+3 growth for 2022 to 3.3% from a projection of 3.7% made in October last year, citing “much weaker” growth in China and continuing weakness in Japan and South Korea.
The growth outlook for 2023 was also cut because the global economy is projected to expand at a more lacklustre pace, with manufacturing activities in the US and Europe continuing to weaken. Lower external demand will lead to more moderate growth in Japan and South Korea.
“The weakening global environment has taken the wind out of the sails of the region’s external trade momentum. The drag on…