ASEAN+3 Fiscal Position Broadly Resilient Despite Emerging Fiscal Pressures
The inaugural ASEAN+3 Quarterly Fiscal Bulletin, a quarterly update to the ASEAN+3 Fiscal Policy Report (AFPR), finds that the region’s fiscal position remained broadly resilient in the first quarter of 2026, despite emerging expenditure pressures and tighter financing conditions following the escalation of the Middle East conflict.
First-quarter revenue outturns remained generally robust across the region, with most economies recording positive year-to-date revenue growth, supported by strong income and consumption-based tax collections. However, resource-related revenues declined among oil exporters, suggesting that the revenue benefits of higher commodity prices have yet to materialize fully. Meanwhile, expenditure pressures have begun to build, particularly in economies with broad-based fuel subsidy regimes, while regional 10-year government bond yields rose after the outbreak of the conflict in February 2026.