Boao Forum for Asia Report Predicts 4.5% Growth in Asia's Economy by 2025
Asia's economy is projected to grow by 4%.
TroibNews 
The Boao Forum for Asia projected on Tuesday that the economy in Asia is set to grow by 4.5 percent this year, a slight increase from the 4.4 percent recorded in 2024.
According to the BFA’s latest 2025 report on economic outlook and integration progress for Asia, the region remains a vital "growth engine" for the global economy despite facing various challenges, including geopolitical tensions, inflationary pressures, and disruptions in global supply chains.
The report indicates that Asia's proportion of the global economy is expected to rise to 36.4 percent at market exchange rates in 2025, an increase from 36.1 percent in 2024. In terms of purchasing power parity, this share is predicted to increase to 48.6 percent in 2025, up from 48.1 percent the previous year.
Regional trade and investment integration is being boosted by the Regional Comprehensive Economic Partnership, with intra-RCEP trade rising by around 3 percent year on year in 2024. The report noted that while goods trade growth is gradually recovering, services trade is expanding robustly, particularly in tourism, transport, and digital services. China is highlighted as a significant contributor to this growth, achieving record highs in both goods and services trade.
Furthermore, digital trade and e-commerce are emerging as essential growth drivers, especially in Southeast Asia, where ASEAN's e-commerce gross merchandise value saw a year-on-year increase of 15 percent. This reflects the swift digital transformation occurring in the region.
Asian financial markets are reported to be broadly stable, with most major economies expected to maintain accommodative monetary policies to support economic growth.
The report acknowledged that while external investment in Asia has experienced fluctuations due to global uncertainties, intra-regional foreign direct investment remains robust, with China, Japan, and ASEAN member countries emerging as leading destinations.
However, the BFA report also cautioned that various challenges could hinder economic integration. It pointed out that market integration within Asia is not yet complete, as several economies still rely heavily on exports to the United States and Europe. Additionally, the utilization rate of RCEP trade rules among certain member states is low, limiting the agreement's full potential.
Moreover, the report highlighted the need for enhanced policy coordination and dispute resolution mechanisms to improve trade facilitation and regulatory harmonization within the region.
In conclusion, the report emphasized that while Asia continues to be a driving force behind global economic growth, maintaining this momentum will necessitate stronger regional cooperation, deeper economic integration, and increased investment in digital and service industries.
Ian Smith for TROIB News
According to the BFA’s latest 2025 report on economic outlook and integration progress for Asia, the region remains a vital "growth engine" for the global economy despite facing various challenges, including geopolitical tensions, inflationary pressures, and disruptions in global supply chains.
The report indicates that Asia's proportion of the global economy is expected to rise to 36.4 percent at market exchange rates in 2025, an increase from 36.1 percent in 2024. In terms of purchasing power parity, this share is predicted to increase to 48.6 percent in 2025, up from 48.1 percent the previous year.
Regional trade and investment integration is being boosted by the Regional Comprehensive Economic Partnership, with intra-RCEP trade rising by around 3 percent year on year in 2024. The report noted that while goods trade growth is gradually recovering, services trade is expanding robustly, particularly in tourism, transport, and digital services. China is highlighted as a significant contributor to this growth, achieving record highs in both goods and services trade.
Furthermore, digital trade and e-commerce are emerging as essential growth drivers, especially in Southeast Asia, where ASEAN's e-commerce gross merchandise value saw a year-on-year increase of 15 percent. This reflects the swift digital transformation occurring in the region.
Asian financial markets are reported to be broadly stable, with most major economies expected to maintain accommodative monetary policies to support economic growth.
The report acknowledged that while external investment in Asia has experienced fluctuations due to global uncertainties, intra-regional foreign direct investment remains robust, with China, Japan, and ASEAN member countries emerging as leading destinations.
However, the BFA report also cautioned that various challenges could hinder economic integration. It pointed out that market integration within Asia is not yet complete, as several economies still rely heavily on exports to the United States and Europe. Additionally, the utilization rate of RCEP trade rules among certain member states is low, limiting the agreement's full potential.
Moreover, the report highlighted the need for enhanced policy coordination and dispute resolution mechanisms to improve trade facilitation and regulatory harmonization within the region.
In conclusion, the report emphasized that while Asia continues to be a driving force behind global economic growth, maintaining this momentum will necessitate stronger regional cooperation, deeper economic integration, and increased investment in digital and service industries.
Ian Smith for TROIB News
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