Deputy finance ministers from South Korea, China, Japan and ASEAN discussed economic impacts and responses to the Middle East conflict. The virtual ASEAN+3 Finance and Central Bank Deputies' Meeting on Wednesday heard warnings from the IMF and ADB about downside risks to the global economy from rising geopolitical tensions. Participants shared policy measures and called for closer regional coordination.
South Korea's Ministry of Economy and Finance said deputy finance ministers from South Korea, China, Japan and ASEAN shared assessments of economic impacts and government responses amid uncertainties from the Middle East conflict. The ASEAN+3 Finance and Central Bank Deputies' Meeting was held virtually on Wednesday, with Moon Ji-sung, South Korea's deputy minister for international economic affairs, representing Seoul.
The International Monetary Fund (IMF) and Asian Development Bank (ADB) warned that the global economy faces significant downside risks due to rising geopolitical tensions in the Middle East. They emphasized the need for swift, targeted fiscal support to address uncertainties and aid vulnerable groups, alongside monetary policy responses and efforts to build economic resilience.
Participating countries agreed with this assessment and exchanged views on economic impacts and their policy responses, the ministry said. Moon outlined Seoul's measures to stabilize prices and support vulnerable groups, including a recent price cap on petroleum products and a push for a supplementary budget without issuing government bonds. He proposed closer coordination among members, noting the conflict as a shared risk, and suggested real-time sharing of policy information.
Participants also discussed ways to further develop the Chiang Mai Initiative Multilateralization (CMIM), a $240 billion currency-swap arrangement established in 2010 as a regional financial safety net. The meeting's outcomes are expected to be finalized at the ASEAN+3 Finance Ministers and Central Bank Governors Meeting in Samarkand, Uzbekistan, in May.
