The Association of Southeast Asian Nations (Asean) economies has again proven itself to be among the world's most resilient economic groupings. Relying on strong exports, sound macroeconomic policies, and effective buffers, the economies of Asean recovered rapidly from the devastating impact of Covid-19, recording growth of 5.6% in 2022 after falling to 3.2% in 2020.
But we cannot view Asean's relative strength in the past three years as reason for complacency. The pandemic and other shocks like the Russian invasion of Ukraine, geopolitical tensions, and climate change exposed weaknesses in Asean's global value chains (GVCs). Ignoring these risks could reduce the immense benefits Asean has gained from global trade and the resilience it continues to build.
