Geoeconomic fragmentation impacts ASEAN+3 and euro area, shifting trade patterns and exposing financial vulnerabilities. ASEAN exports benefit, while Europe increases distant financial exposures.
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Geoeconomic fragmentation impacts ASEAN+3 and euro area, shifting trade patterns and exposing financial vulnerabilities. ASEAN exports benefit, while Europe increases distant financial exposures.
Geoeconomic fragmentation is increasingly influencing international dynamics as geopolitical tensions intensify. As countries increasingly adopt inward-focused strategies to enhance their economic and national security, this paper explores the implications of such fragmentation, particularly on trade and capital flows within the ASEAN+3 and Eurozone regions.
These regions, known for their high trade openness, remain particularly susceptible to the effects of these shifts. The paper was collaboratively prepared by the ASEAN+3 Macroeconomic Research Office (AMRO) and the European Stability Mechanism (ESM), drawing insights from both regions.
Trade Patterns in ASEAN+3 and Euro Area
The analysis…