Thailand
AMRO cuts ASEAN+3 growth forecast to 6.1% this year
Economic growth in the ASEAN +3 region, will be lower than forecast earlier this year, according to AMRO. It says the grouping, which includes the 10 ASEAN members plus China, Japan and South Korea will see an average 6.1 percent growth this year, down from its March forecast of 6.7 percent.
The ASEAN+3 Macroeconomic Research Office (AMRO) is a regional surveillance organisation that aims to contribute to economic and financial stability. AMRO said regional economies will probably grow by 5 percent next year as vaccination campaigns gather pace, and governments and businesses start to get an idea of what the ‘new normal’ will look like.
“The region is adapting and learning to function within the more uncertain environment,” it said in a report out today [Thursday]. “The pandemic has altered the way businesses and consumers transact, accelerated digitalisation, and led to the emergence of new business models and types of firms. Rising protection and immunity are also allowing some resumption of travel,” it said.
AMRO warned against withdrawing fiscal and monetary policy support too quickly, saying any tightening “needs to tread the fine line between preserving the remaining policy space and supporting the rebound”. It recommended a gradual phasing out of existing policies and said governments and central banks will need to make sure businesses are informed of any tapering well in advance to avoid any shocks to the system.
Even as stimulus is withdrawn, AMRO said governments should continue to support hard hit sectors while ensuring an even recovery to avoid social inequality. It said governments need to capitalise on the growing adoption of e-commerce to bring about a smooth transition to a new digital economy.
Source: https://www.khmertimeskh.com/50947982/amro-cuts-asean3-growth-forecast-to-6-1-this-year/