The International Monetary Fund (IMF) is urging Asean to strengthen the regional capital market and trade connectivity to counter US tariffs.
According to Pornchai Thiraveja, director-general of the Fiscal Policy Office, the IMF's proposal stemmed from a roundtable meeting between the IMF managing director and Asean finance ministers and central bank governors during the annual spring meetings of the World Bank Group and the IMF, held last week in Washington. Thailand was represented by Deputy Finance Minister Paopoom Rojanasakul.
Mr Pornchai said Kristalina Georgieva, the managing director of the IMF, referred to how tariff barriers could be addressed, recommending Asean member states promote policies to enhance the connectivity of regional capital markets and trade.
Furthermore, countries were told to better organise and strengthen the efficiency of their domestic supply chains to be more resilient amid global volatility.
Low-income countries, in particular, are grappling with a global economic slowdown and declining aid from developed nations, prompting them to mobilise more domestic resources in order to raise tax revenues above 15% of GDP and maintain sustainable fiscal policies.
According to Mr Pornchai, there was also a bilateral meeting between Mr Paopoom and Ms Georgieva to discuss Thailand's preparations to host the annual meetings of the World Bank Group and IMF (AM2026) in 2026.
Ms Georgieva expressed her condolences regarding the recent earthquake that struck Thailand, but conveyed strong confidence that the country would successfully prepare for AM2026. They also exchanged views on Thailand's current economic outlook.
Moreover, the 111th Development Committee Meeting (DC Plenary) of the World Bank was held. The key points can be summarised as follows: the global economy is facing a major turning point, pressured by shifts in the policies of major economies, escalating trade tensions, high levels of public debt, and weak medium-term growth prospects.
The IMF forecasts that global economic growth will slow from 3.3% in 2024 to 2.8% in 2025, before recovering slightly to 3% in 2026. Inflation is expected to decline globally, with inflation in developed countries projected to fall more rapidly than in emerging markets and developing economies.