Diokno addresses ASEAN finance ministers and central bank governors, shares PH growth and risk mitigating strategies amidst global challenges

Finance Secretary Benjamin E. Diokno delivered an intervention in response to the global economic updates and risks and shared the Philippines’ strategies before ASEAN member states during the 10th ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) on August 25, 2023 in Mulia Hotel, Jakarta, Indonesia.

The AFMGM, chaired by Indonesian Finance Minister Sri Mulyani Indrawati and Bank of Indonesia Governor Perry Warjiyo, aims to monitor the deliverables of the Working Committees and gathers Ministers and Governors for discourse on global and regional outlook and development challenges.

“While the ASEAN economies continue to be a major engine of global economic growth, policymakers must remain vigilant of multiple external risks faced by the world economy. These include rising geopolitical tensions, monetary policy tightening, elevated domestic inflation, and climate change,” Secretary Diokno said during his intervention.

The International Monetary Fund (IMF), World Bank (WB), and Financial Stability Board (FSB) presented the global economic outlook, challenges ahead, and how Asia and ASEAN are projected to fare against ongoing risks.

According to the IMF, while global potential growth is expected to remain low, Asia will continue to drive half of global growth. The WB supported this view, saying that ASEAN’s long-term growth potential remains relatively good and can be boosted with labor reforms, investment in energy transition, and stronger trade.

Secretary Diokno said that sustained investments in infrastructure and social programs; measures to address high inflation; diversification of external markets; enforcement of measures supporting labor and employment; and provision of affordable lines of credit for Micro, Small and Medium Enterprises (MSMEs), fisherfolk, farmers, and local entrepreneurs should be adopted by ASEAN member states to mitigate the impacts of global challenges.

To this end, Secretary Diokno underscored the importance of maintaining solidarity between ASEAN member states through collaborative efforts, such as strengthening the region’s surveillance activities, cooperating on macroeconomic policies, and enhancing regional financial