Greater Integration, More Domestic Demand Conducive to Asia's Durable Growth - IMF Official

October 29, 2025 - Greater regional integration and more domestic demand are conducive to sustaining strong and durable economic growth in Asia, according to Krishna Srinivasan, director of the International Monetary Fund's Asia and Pacific Department. He urged economies in the region to make more efforts in these aspects amid trade tensions to ensure that Asia continues to be a major global growth powerhouse. According to the IMF's latest forecast, Asia is projected to grow 4.5 percent in 2025 and 4.1 percent next year. "There have been some very strong tailwinds which explain why Asia has grown much faster than what we thought in April. One, because ... tariffs are lower than what we had projected in April, exports have been very strong.

Countries across the region have provided macro policy support, both fiscal and monetary. And finally, financial conditions have been very supportive," Srinivasan explained. Despite Asia's economic resilience, the IMF official noted that downside risks remain, including trade tensions which could reemerge and hurt prospects in Asia, as well as potential debt-related vulnerabilities if interest rates start rising. Srinivasan also emphasized that only 30 percent of Asia's demand for final goods comes from within the region, while the rest comes from the European Union and the United States, suggesting greater regional integration could generate more growth.