Overview
- The IMF lowered Asia's growth forecast to 3.9% in 2025 and 4.0% in 2026, down from 4.6% in 2024, citing heightened trade uncertainty from U.S. tariffs.
- Asian economies are more exposed to U.S. trade policy shocks due to their high openness and deep integration into global supply chains.
- With inflation at or below target in most Asian economies, central banks have room to ease monetary policy to cushion external shocks.
- The IMF emphasized the need for Asia-Pacific nations to boost domestic demand, expand intra-regional trade, and implement structural reforms to strengthen resilience.
- India, projected to grow at 6.2% in 2025, must significantly increase private investment to achieve its Viksit Bharat 2047 development goals.