In particular, ASEAN's growth will be led by Vietnam’s and the Philippines’s economic growth. Vietnam’s GDP growth is forecast to reach 6.3% this year. The OECD report said that domestic demand will be the key driver of economic growth in the region.
However, the OECD warned there are still many potential risks from the external environment that can affect ASEAN countries; including the decline of China's economy, the instability of the financial markets and the impact of drought due to the El Nino phenomenon. Therefore, the OECD recommended that ASEAN should strengthen the connection between the member countries, and reduce trade barriers, in order to maintain growth momentum as well as overcome the challenges.
