Washington: The World Bank-IMF Governing Council meeting has advised ASEAN countries to enhance intra-regional trade as a strategy to mitigate the effects of tariffs imposed by the Trump administration. The council anticipates a global GDP growth rate of 2.8% by 2025 and suggests delaying interest rate cuts if inflation remains high.
According to Thai News Agency, Mr. Paopum Rojanasakul, Deputy Minister of Finance, participated in the Spring Meetings of the Governing Council of the World Bank and the International Monetary Fund, held in Washington, D.C., from April 21 to 24, 2025. During a roundtable discussion with Ms. Kristalina Georgieva, the Managing Director of the International Monetary Fund, and ASEAN Finance Ministers and Central Bank Governors, strategies to address global economic volatility and the “Trump” tariff wall were deliberated. Ms. Georgieva proposed that ASEAN nations should strengthen their capital markets and trade relations within the region to counter the tariff challenges.
ASEAN countries were urged to organize efficient domestic supply chains to become resilient against volatile economic situations. It was noted that small, low-income countries are experiencing a slowdown in the global economy with reduced aid from developed nations. Therefore, these countries need to mobilize domestic resources to increase tax revenues to more than 15 percent of GDP for sustainable fiscal policies. Currently, only 21 percent of Asia’s trade is intra-regional, and increased ASEAN trade could help offset the global trade slowdown. Emphasizing the importance of regional cooperation, ASEAN, as the world’s fourth-largest economy in combined GDP, should focus on strengthening intra-regional trade.
In the World Bank’s Development Committee meeting, it was highlighted that the world economy is at a crucial juncture due to rising trade tensions, high public debt, and weak medium-term economic growth. The IMF predicts a global economic growth slowdown from 3.3 percent in 2024 to 2.8 percent in 2025, with a slight recovery to 3.0 percent in 2026. Worldwide inflation is expected to decrease, with developed countries experiencing a faster decline than emerging and developing economies.
The meeting also covered strategies to handle financial market volatility. Policies need to be implemented to restore confidence and reduce economic imbalances both domestically and internationally. An economic buffer should be established to withstand future volatility, while central banks are advised to maintain price and financial stability. In cases of high inflation risks, delaying interest rate cuts was recommended. Structural reforms should aim to attract female workers and the elderly to enhance the business environment, encourage innovation, and boost technological capabilities.