Asia needs deeper financial integration

The ASEAN+3 Macroeconomic Research Office, the regional macroeconomic surveillance unit of the Chiang Mai Initiative Multilateralization, released the Regional Economic Outlook Report 2017 on Wednesday, the first release in China since its establishment in 2011.

The 1997-98 Asian financial crisis led to the creation of the Chiang Mai Initiative, and subsequently the CMIM, which in turn led to the establishment of the ASEAN+3 Macroeconomic Research Office.

In the 20 years since the Asian financial crisis, Asia has integrated itself in many aspects. But compared with trade and investment, the region's financial integration has lagged behind. According to the Asian Development Bank's Asian Economic Integration Report 2016, about 60 percent of Asia's trade is intra-regional but only 20 percent of financial flows are within the region.