In a statement, AMRO also maintained its 2024–25 growth forecast for the region at 4.4% and 4.3%, respectively, due to favorable export prospects, strong domestic demand, and a tourism recovery.
The ASEAN+3 region is set to grow at 4.4% this year, slightly down from April's 4.5% forecast, with exports rebounding on improved global demand.
However, the Singapore-based multilateral research agency said US interest rate policies are increasing market volatility, particularly in the run-up to the November presidential election, potentially escalating US-China trade tensions.
AMRO chief economist Hoe Ee Khor emphasized the need for policies enhancing economic resilience to withstand shocks.
“The bad news is that the region’s outlook next year could be significantly affected by the outcome of the US elections. The good news is, the region has weathered similar shocks before,” Khor said. “Our economies need to keep rebuilding policy space and pursue policies to enhance resilience to shocks.”
