Chapter 1: Navigating Spillovers from Global Shocks: Why Fundamentals Matter
Despite a challenging global macro-financial environment, ASEAN+3 financial markets and systems have remained broadly resilient. Market reactions have become increasingly differentiated, reflecting variations in domestic economic fundamentals, external buffers, and policy credibility. Nonetheless, cross-cutting vulnerabilities and country-specific risks warrant close vigilance.
Looking ahead, AI-related market corrections, US dollar volatility, nonbank leverage, digital finance expansion, and cyber threats could create new sources and channels of financial stress. Key policy priorities include preserving macro-financial buffers and policy credibility, deepening domestic financial markets, strengthening system-wide surveillance, and enhancing regional cooperation and crisis preparedness.
Source: www.amro-asia.org
