Asean+3 nations discuss economic reponses amid Mideast conflict

EOUL: South Korea, China, Japan and the Association of Southeast Asian Nations (Asean) shared their assessments of the economic impact and government responses amid uncertainties stemming from the Middle East conflict, Yonhap News Agency reported Thursday.

Citing Seoul's finance ministry, the report said their talks involving deputy finance ministers came during the Asean+3 Finance and Central Bank Deputies' Meeting, held virtually on Wednesday.

South Korea was represented by Moon Ji-sung, deputy minister for international economic affairs.

During the meeting, major economic organisations, such as the International Monetary Fund and the Asian Development Bank, warned that the global economy faces significant downside risks due to rising geopolitical tensions in Middle East.

They also emphasised the need for swift, targeted fiscal support to address growing uncertainties and assist vulnerable groups, along with monetary policy responses and efforts to strengthen economic resilience.

The participating countries shared such an assessment and exchanged views on the economic impact and their respective policy responses, the ministry said.

Moon outlined Seoul's ongoing efforts to stabilise prices and support vulnerable groups, including the recent implementation of a price cap on petroleum products and its push for a supplementary budget without issuing government bonds.

Moon also proposed closer coordination among the regional members, noting that the Middle East conflict poses a shared risk, and suggested real-time information sharing on policy responses.

Participants also discussed ways to further develop the Chiang Mai Initiative Multilateralisation, a US$240 billion currency-swap arrangement established in 2010 as a regional financial safety net.

The outcomes of the deputies' meeting are expected to be finalised at the upcoming Asean+3 Finance Ministers and Central Bank Governors Meeting, scheduled to be held in Samarkand, Uzbekistan, in May.

Asean comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste and Vietnam.