Asian Outlook 2025

According to the latest outlook from the Asian Development Bank (ADB), economic growth in developing Asia and the Pacific remains steady for 2025.

The region, encompassing 46 Asia-Pacific economies, is projected to grow 4.8 per cent in 2025, a slight revision from the previous ADB estimates that reflects a slower performance in some countries during the third quarter of 2024 and a more subdued outlook for consumer spending.

The ADB highlighted potential risks to the outlook, including significant U.S. policy changes, heightened geopolitical tensions, and the possibility of a further slowdown in China’s property market. Inflation forecasts for the region have also been adjusted downward to 2.6 per cent for 2025, primarily due to easing global commodity prices.

By subregion, the 2025 estimate for developing Asia has been adjusted to 4.8 per cent, East Asia’s growth forecast remains unchanged at 4.2 per cent, and South Asia’s outlook has been revised downward to 6.3 per cent. Southeast Asia’s prospects have improved, with the 2025 forecast revised upward to 4.7 per cent, supported by robust manufacturing exports and increased public capital spending in larger economies, while growth in the Pacific remains stable at 4.1 per cent.

The Chinese economy is projected to grow by 4.5 per cent in 2025, while India’s forecast has been revised downward compared to the earlier estimate, to 7 per cent.

For members of the ASEAN-5, growth in 2025 is expected as follows: Vietnam (6.6 per cent), Philippines (6.2 per cent), Indonesia (5 per cent), Singapore (2.6 per cent), and Thailand (2.7 per cent).