A World Bank senior economist says geopolitics, economic headwinds, and policy uncertainties are the three main risk factors confronting Asean.
Speaking at a panel discussion at the Asean Economic Opinion Leaders Conference: Outlook for 2025 on Thursday (Jan 9), Aakash Mohpal highlighted that slower growth in China has also affected economic growth in Asean.
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Speaking at a panel discussion at the Asean Economic Opinion Leaders Conference: Outlook for 2025 on Thursday (Jan 9), Aakash Mohpal highlighted that slower growth in China has also affected economic growth in Asean.
Read more at https://bit.ly/40psFnv
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00...economy, geopolitics, finance that are building up and...
00:05The recent distressing events in the Middle East, namely the Israel-Gaza war, conflict,
00:11has distressed significant economic consequences.
00:17For example, transport has been disrupted.
00:20Before, the ships travelling from ASEAN to the West and vice versa,
00:25would traverse from the Suez Canal.
00:27But now they have to take a long winding route around the Cape of Good Hope,
00:31and shipping costs as a result are 40% higher.
00:35Any escalation or a lack of immediate resolution of the conflict
00:41worries us that the prices of essentials like oil and other demand for exports
00:49might be affected from the ASEAN region.
00:54At the same time, as a second risk, we know that China has been a powerful engine of growth globally.
01:02In this graph, what you see in the orange dot and the right axis is China's growth rate.
01:09And the red bars are the effect of China's growth rate on other developing economies.
01:16So when growth in China slows down, growth in other developing economies,
01:21including ASEAN, also slows down.
01:25So these are the economic uncertainties that we have to deal with.
01:29And finally, there are policy uncertainties.
01:33Worldwide, we have seen an increase in trade distorting measures.
01:38These take the form of subsidies, export-related subsidies, other tariffs, and so on and so forth.
01:46And these are going to affect future growth in the region.
01:51So what do we recommend needs to happen to insulate ASEAN and East Asian Pacific region from these risks?
02:01It's deeper trade agreements and a program of domestic reforms which really build resilience towards this.
02:16For more UN videos visit www.un.org