Ever since the COVID-19 outbreak in early 2020, the region’s economies have been waging a war against the virus for control of their economies while saving lives. In 2021, the development of effective COVID-19 vaccines and high vaccination rates enabled the ASEAN+3 economies to relax pandemic containment measures, helping to facilitate economic re-opening. Looking ahead in 2022, just as it appears that the region may finally have gained some ground in its long battle against the virus, new risks have emerged.

The Russia-Ukraine conflict, if prolonged, could keep energy prices elevated and risks stoking inflation, dampening the prospects of economic recovery in the region. It could also exacerbate supply chain disruptions and raise global cost pressures, posing the risk of stagflation for major advanced economies. Policy surprises in these economies would have implications for interest rates, capital flows, and financial market volatility in the region.

The ASEAN+3 Regional Economic Outlook or AREO 2022 covers key macroeconomic developments in the ASEAN+3 region and assesses the risks to the outlook.

During the launch of the AREO 2022, AMRO Chief Economist Dr. Hoe Ee Khor presented the key findings of the report and answered questions from the media with Deputy Group Head and Senior Economist for Regional Surveillance Anthony Tan. Watch the replay for their insights!