The global economic landscape is changing fast.

Scarring from the COVID-19 pandemic has weakened potential growth, making slower income gains the new normal for many countries. Geopolitical tensions — especially the trade and technology “war” between the United States and China — are threatening not only to halt globalization, a key enabler of growth over the last few decades, but also to split the world economy into separate blocs. And the days of low and stable inflation seem to be giving way to structurally higher and more volatile prices.

Meanwhile, rapid digitalization — propelled partly by advanced technologies like generative artificial intelligence — is continuing apace and the effects of climate change are becoming more visible by the day. Taken together, these developments pose major challenges to policymakers worldwide. Those in the ASEAN+3 countries — the 10 ASEAN member states, plus China, Japan and South Korea — are no exception.