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ASEAN's Resilience and Economic Growth in the Post-COVID Era

By Cpiet Selasa, 05 September 2023 Pengunjung (8) 3 Mins Read
aseans-resilience-and-economic-growth-in-the-post-covid-era
Inp.polri.go.id - Jakarta. During the turbulent year of 2020, the world was gripped by the devastating COVID-19 pandemic, leaving communities grappling with the loss of their livelihoods. However, amid the chaos, the ASEAN organization swiftly rose to the occasion, activating regional mechanisms for information exchange and fostering cooperation. During this critical period, the ASEAN BioDiaspora Virtual Center emerged as a beacon of hope. Its primary mission was to provide member states' governments with a robust knowledge base to guide their decisions in the battle against the pandemic. As time unfolded, the organization embarked on advanced pandemic response initiatives while fortifying resilience against future health crises, all achieved through dialogue, development, and collaboration among the nations of ASEAN. Amidst the governmental upheaval and the heartache of countless victims, an unexpected silver lining emerged—the pandemic catalyzed a digital revolution across Southeast Asia. Remarkably, approximately 40 million new internet users joined the online sphere in Indonesia, Malaysia, the Philippines, Vietnam, and Thailand. The stringent COVID-19 restrictions ignited a remarkable 63% surge in e-commerce enterprises. As the pandemic storm gradually receded, economic growth soared, with ASEAN countries navigating the turbulent waters successfully. In the year 2023, Indonesia achieved a significant milestone by reclaiming its status as an upper-middle-income country, as affirmed by the World Bank. The yardstick for this achievement was Indonesia's annual per capita gross national income (GNI), which reached an impressive $4,580 in 2022. This newfound status serves as a testament to Indonesia's remarkable recovery from the pandemic's grip. Indonesia is not the sole champion of resilience. Singapore, the Philippines, and Vietnam also experienced robust economic growth. The Southeast Asian region continues to thrive, with ASEAN collectively amassing a staggering total GDP of $3,6 trillion in 2022. Projections for 2024 paint an even more promising picture, with ASEAN expected to lead the world in economic growth, reaching an impressive 4.5 percent. Beyond its economic prowess, ASEAN emerged as a magnet for Foreign Direct Investment (FDI), solidifying its position as a global powerhouse. In 2022, a remarkable 17 percent of FDI flowed into ASEAN, solidifying its status as the premier destination for foreign investment among developing regions. However, the resilience of ASEAN faced another stern test during the tumultuous conflict between Russia and Ukraine. The global strife briefly led to spikes in commodity prices, given that both warring nations were major exporters of fossil fuels, grains, fertilizers, and metals. Nonetheless, the situation rapidly stabilized, and while not fully recovered, the ASEAN community's collective strength served to mitigate the impact of the Ukraine war. In a resounding affirmation of ASEAN's resilience, an official press release from the ASEAN Summit on Tuesday, September 5, 2023, stated, "Indeed, the ASEAN community is resilient. This strength was not acquired by chance but was diligently cultivated through the strategic policies of its member governments." (ndt/hn/nm)
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