Reducing Non-Tariff Barriers Can Boost ASEAN GDP By 4.3% Over Long Run - IMF

October 26, 2025 - Reducing non-tariff barriers can boost ASEAN's gross domestic product (GDP) by 4.3 percent over the long run, according to International Monetary Fund (IMF) managing director Kristalina Georgieva. Speaking during a plenary session at the 47th ASEAN Summit in Kuala Lumpur, Georgieva said this is equivalent to adding over one-third of Malaysia's current GDP to the bloc and creating four million new jobs when coupled with smart labour market policies. "The regional trade within ASEAN today makes up slightly over 20 per cent of total trade, mostly in intermediate goods, compared to 60 per cent, mostly final goods, in the European Union (EU).

Removing trade barriers will help your economies grow faster," she stated. Georgieva also supports the upgrading of the ASEAN Trade in Goods Agreement and the taking of similar steps to free up trade in services, paired with stronger financial integration and transformative joint investments. The IMF has projected global growth at 3.2 percent this year and 3.1 percent in 2026, while ASEAN is projected to grow 4.3 percent in both years. Georgieva said improved policy fundamentals, private sector adaptability, and deepening regional and bilateral cooperation are the sources of this resilience.