Geoeconomic fragmentation affects ASEAN+3 and the euro area, altering trade patterns and financial vulnerabilities. ASEAN benefits, while Europe faces increased distant exposures, prompting need for strategic adaptation and regional support.
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Geoeconomic fragmentation affects ASEAN+3 and the euro area, altering trade patterns and financial vulnerabilities. ASEAN benefits, while Europe faces increased distant exposures, prompting need for strategic adaptation and regional support.
Key Points
Geoeconomic Fragmentation: The phenomenon is affecting ASEAN+3 and the euro area, altering trade patterns and revealing financial vulnerabilities amidst rising geopolitical tensions. Countries are adopting inward-focused strategies to enhance economic and national security, influencing trade and capital flows significantly in these regions, which are typically characterized by high trade openness.
Trade Dynamics: While trade values in the ASEAN+3 region have stabilized, changing dynamics favor ASEAN as a regional “connector” amidst trade tensions, particularly affecting China’s export activities. Simultaneously, the euro area has…