The informal AFDM+3 was a great chance for the ASEAN countries and the 3 partner countries China, Japan, and Korea to discuss about the regional economic review, as well as the economic developments of each member country.

To follow the common procedures for ASEAN+3, this AFDM+3 was co-chaired by Vietnam’s Finance Vice Minister Tran Xuan Ha and his counterpart, Japan’s Finance Deputy Naoyuki Shinohara. Finance and Central Bank Deputies of all the 13 ASEAN countries were attending the Meeting.

During the discussion session held after the presentations made by the international financial institutions, Finance and Central Bank Deputies shared views on the following issues:

- The global economy is slowing down, the economic outlook is not clear due to the complexity of recovery from the  subprime mortgage turmoil and solutions for related financial accounts in the US. The global GDP growth is estimated to decline from 4.9% of 2007 down to 3.7% in 2008.

- The global price level, especially the oil, food, and commodity prices continue to go up. However, the price tension seems to be defused, and prices are likely to go down by the end of 2008.

- The ASEAN+3 economies  will be influenced by the significant developments in the context of trade liberalization and foreign investments. However, despite a slower rate of growth compared to 2007 (5.4%), the region is expected to maintain reasonably high growth rate of 4.7%. The lower demand for exports will be partly offset by the stably rising domestic demand.

- Inflation in ASEAN+3 is rising in the face of high international price levels.

            The Meeting ended with a session on economic review and policy dialogue for each ASEAN+3 member – a surveillance mechanism for the region. This is an important item of the informal AFDM+3 to promote the sharing of experience and policy stance, enhance financial and monetary policy coordination, and strengthen the region’s financial system.