ASEAN warns of risks from Middle East tensions

Finance ministers and central bank governors from the ASEAN have warned that rising geopolitical tensions, including instability in the Middle East, pose growing risks to the global and regional economy.

In a joint statement, the officials urged vigilance over a range of threats, including policy uncertainty linked to tariffs, volatile capital flows, climate-related shocks, and rising debt pressures, News.Az reports, citing Reuters.

The group said recent developments in the Middle East are adding to already fragile global economic conditions, increasing uncertainty for trade and investment flows across the region.

ASEAN leaders also reaffirmed their commitment to strengthening regional financial cooperation to reduce exposure to external shocks.

They welcomed the reactivation of the ASEAN Swap Arrangement, a mechanism designed to provide short-term foreign currency liquidity support to member states facing balance-of-payments pressures.

Officials also endorsed steps to deepen financial integration across the bloc, including strengthening the ASEAN Banking Integration Framework.

Climate finance was highlighted as a shared priority, with emphasis on adaptation, mitigation, and funding for loss and damage. Leaders also called for improved access to international climate funds and greater private-sector participation.

In addition, ASEAN approved Myanmar’s inclusion as the seventh member of its Customs Transit System and announced plans to pilot rail-based transport under the scheme by the end of 2026, aiming to improve regional connectivity.

The statement reflects growing concern among Southeast Asian economies about the spillover effects of global conflicts and trade fragmentation on growth and financial stability.

News.Az 

By Aysel Mammadzada