The Boao Forum for Asia (BFA) announced on Tuesday that Asia’s economy is expected to expand by 4.5% in 2025, slightly up from the 4.4% growth recorded in 2024. Despite challenges such as geopolitical tensions, inflation, and disruptions in global supply chains, the report highlighted that Asia remains a key driver of global economic growth.
According to the report, Asia’s share of the global economy at market exchange rates is expected to rise to 36.4% in 2025, up from 36.1% in 2024. When measured by purchasing power parity, this share is projected to grow from 48.1% in 2024 to 48.6% in 2025.
RCEP Strengthens Trade and Investment in the Region
The report noted that trade in goods is steadily recovering, while services trade continues to grow rapidly, particularly in tourism, transportation, and digital services. China played a major role in this progress, with its trade in both goods and services reaching all-time highs.
The Regional Comprehensive Economic Partnership (RCEP) has accelerated regional trade, with trade within the RCEP bloc rising by about 3% year over year in 2024.
Digital trade and e-commerce are also emerging as important growth areas, especially in Southeast Asia. ASEAN’s e-commerce market showed strong growth, with gross merchandise value increasing by 15% compared to the previous year, reflecting the region’s fast-paced digital transformation.
At the same time, financial markets across Asia remain stable. Many major economies are expected to continue adopting supportive monetary policies to encourage growth. While external investments in Asia have experienced some ups and downs due to global uncertainties, foreign direct investment within the region remains solid. China, Japan, and ASEAN countries continue to be top choices for investors.
Challenges in Market Integration and Policy Alignment
The report also pointed out that Asia faces hurdles in achieving deeper economic integration.
Market integration within the region is still incomplete, with many economies heavily dependent on exports to markets in the United States and Europe. Additionally, the use of RCEP trade rules by some member countries remains low, which limits the agreement’s full potential.
The report also called for better policy coordination and stronger dispute resolution systems to improve trade efficiency and regulatory alignment across the region.
In summary, while Asia continues to play a major role in driving global economic growth, the report emphasized the need for stronger regional collaboration, deeper integration, and more investment in digital and service industries to maintain momentum.
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Geoff Thomas is an award winning journalist known for his sharp insights and no-nonsense reporting style. Over the years he has worked for Reuters and the Canadian Press covering everything from political scandals to human interest stories. He brings a clear and direct approach to his work.
