ASEAN+3 economies are being advised to adopt stronger fiscal management strategies to navigate emerging risks and structural headwinds, according to insights from AMRO.
The report highlights that the region is facing a complex mix of challenges, including global economic uncertainty, geopolitical tensions, ageing populations, and climate-related risks. These factors are placing pressure on fiscal balances and long-term economic sustainability.
According to the analysis, while many economies have recovered from recent global disruptions, vulnerabilities remain. Rising public debt levels, inflationary pressures, and external shocks could impact growth and financial stability if not managed effectively.
AMRO emphasises the need for prudent fiscal policies, including efficient public spending, enhanced revenue mobilisation, and improved debt management. Strengthening fiscal buffers will enable governments to respond to future shocks while maintaining economic resilience.
The report also highlights the importance of structural reforms, such as improving productivity, enhancing digital infrastructure, and supporting sustainable development. These measures can help economies adapt to long-term challenges and maintain competitiveness.
From a risk management perspective, coordinated policy responses and regional cooperation are essential to address interconnected risks. Governments must balance short-term economic support with long-term fiscal discipline.
The findings underscore that strong fiscal governance is critical for ensuring stability and sustainable growth in the ASEAN+3 region amid evolving global risks.
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