Singapore (VNA) – The ASEAN+3Macroeconomic Research Office (AMRO) forecast the ASEAN+3 region will expand by6.7 percent this year and 4.9 percent in 2022, after contracting marginally by0.2 percent in 2020. 

The region is comprised of the 10 ASEAN membercountries and China, Japan, and the Republic of Korea.

In its annual flagship report, the ASEAN+3Regional Economic Outlook, released on March 31, AMRO said on a regional basis,aggregate Plus-3 growth in 2021 is estimated to rise to 7.2 percent, while theASEAN subregion is anticipated to expand by 4.9 percent.

Myanmar is predicted to be the only nation torecord economic contraction of 2.6 percent while China the fastest growth, 8.7percent.

The report said the turnaround in manufacturing andexports, alongside supportive economic policies, are expected to driveexpansion. The eventual widespread distribution of vaccines will furthernormalise economic activity and improve labour market conditions. The gradualreturn of travel and tourism will benefit most economies, especially Cambodia,Japan, Singapore, and Thailand.

The ASEAN+3 region, which is home to 30 percent ofthe world’s population, collectively accounts for only 3 percent of the totalnumber of confirmed COVID-19 cases globally.

However, until herd immunity is achieved throughwidespread vaccinations, localised containment of the virus may continue to benecessary, according to AMRO.

The office added a silver lining in the pandemiccloud is that it has inadvertently become a springboard for digitalisation inthe ASEAN+3 region. As users become ever more comfortable with newtechnologies, the “flight to digital” will be a key factor in strengtheningsupply chains and facilitating global trade. 

Consequently, the region has a tremendousopportunity to upgrade and fortify its role in global value chains, andchampion not only greater openness but also strengthen its competitiveness inthe Fourth Industrial Revolution. 

Full deployment of new technologies will requireboth hard and soft infrastructures to be in place, which calls for strongbilateral and multilateral cooperation, the report noted./.