ASEAN has become the world’s fourth largest economy, with a combined GDP exceeding $4 trillion and growing at a rate 25 percent higher than the global average. Despite changes in geopolitics, trade, technology, demographics, and climate, both ASEAN and the global economy have shown resilience. Global growth is projected at 3.2 percent this year and 3.1 percent in 2026, while ASEAN’s growth is expected to be 4.3 percent for both years.
Several factors have contributed to this resilience. These include improved policy fundamentals built over many years by ASEAN members, adaptability in the private sector through supply chain adjustments and investment in new technologies such as artificial intelligence (AI), and continued engagement in international trade under Most Favored Nation rules alongside efforts to strengthen regional cooperation.
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), emphasized these points during her address: “First, over the last decades ASEAN members have invested in strong policy fundamentals—independent central banks, inflation targeting, fiscal rules—and these investments are paying off. This work must continue—and it is an area where the IMF offers cross-country analysis and the transmission line of our bilateral, regional, and global economic assessments.”
She also highlighted collaboration between the IMF and ASEAN+3 on financial stability measures: “We also contribute to the region’s financial stability through our collaboration with ASEAN+3 to strengthen and operationalize the mutual insurance against shocks provided by the enhanced Chiang Mai Initiative Multilateralisation (CMIM).”
Georgieva noted that private sector dynamism remains crucial for job creation and growth within ASEAN. She called for further structural reforms to improve productivity by eliminating bureaucratic obstacles, expanding access to finance, and enhancing workforce skills.
Regarding regional integration, she pointed out that intra-ASEAN trade accounts for just over 20 percent of total trade—mostly intermediate goods—compared to about 60 percent within the European Union where final goods dominate. Georgieva stated: “Removing trade barriers will help your economies grow faster. Our analysis shows that reducing nontariff barriers can boost ASEAN’s GDP by 4.3 percent over the long run—equivalent to adding over one-third of Malaysia’s current GDP to the bloc and creating some 4 million new jobs when coupled with smart labor market policies.”
She expressed support for upgrading existing trade agreements: “So, Yes to upgrading the ASEAN Trade in Goods Agreement. Yes to taking similar steps to free up trade in services. Yes to pairing this with stronger financial integration. Yes to transformative joint investments. And Yes to deeper sharing of technology, including in digital infrastructure and AI... We are facilitating knowledge sharing on AI preparedness through peer-to-peer engagements in ASEAN and beyond.”
Looking ahead, Georgieva announced that safe and inclusive digital finance will be a main theme at next year’s IMF Annual Meetings in Bangkok.
In closing her remarks she said: “Let the first half of this century be remembered as ASEAN’s time—a highly integrated, dynamic community of nations, working for the good of the region and for the good of the world.”