KUALA LUMPUR: The Asean+3 Macroeconomic Research Office (Amro) has maintained its short-term growth forecast for the Asean+3 region at 4.6% this year, up from 3.2% last year.

       In its quarterly update of the Asean+3 Regional Economic Outlook, it said although the ongoing weakness in global trade has prompted a slight reduction in the Asean growth forecast for 2023 to 4.5% from last April’s projection of 4.9%, this will be offset by improving prospects in the Plus-3 economies.

       “In China, economic activities rebounded strongly in the first quarter of 2023 after the post-pandemic reopening late last year.

       “Investment activities, previously disrupted by pandemic restrictions, have also picked up pace,” said chief economist Hoe Ee Khor in a virtual media briefing yesterday.

       The growth forecast for the Plus-3 economies has been raised slightly to 4.6% from 4.5% in April, reflecting the stronger inbound tourism and domestic demand in Hong Kong and Japan.

       “At the same time, the growth forecast for Asean has been revised downward to 4.5% from 4.9% in April, reflecting the impact of weaker external demand on Singapore and Vietnam. Growth is expected to ease slightly to 4.5% in 2024,” he shared.

       He pointed out that Asean+3’s recovery is now riding on resilient demand within the region.

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       “Recovering labour markets and falling inflation, along with steadily growing intra-regional tourism, are helping to cushion growth against sluggish external demand that is dampening the region’s exports,” he said. — Bernama