Regional Economic Outlook, Asia and Pacific, October 2025: Navigating Trade Headwinds and Rebalancing Growth
Economies in the Asia-Pacific region have been resilient so far in 2025. Nevertheless, higher US tariffs will likely reduce external demand and eventually weigh on growth. Greater regional integration and structural reforms will be critical for sustainable growth.
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Publication date: October 2025
ISBN: 9798229025881
$20.00
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Urban and Regional , Asia-Pacific , economic outlook , conjuncture , GDP growth , trade , capital efficiency
Summary
Economies in the Asia-Pacific region have been resilient in 2025, posting stronger-than-expected economic growth in the first half of the year amid external and domestic challenges. Nevertheless, higher US tariffs and increasing protectionism will likely reduce demand for Asian exports and eventually weigh on growth in the near-term. Amid these forces, policies should focus on increasing regional integration by reducing barriers to trade and investment, and boosting productivity growth with better financial intermediation and allocation of capital. Additional measures to support the services sector, mitigate the impact of population aging, and upgrade policy frameworks are critical for resilient and sustainable growth, and would help prepare for future shocks.
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