Asia's economy is projected to expand by 4.5% in 2025, outpacing last year's 4.4% growth rate, according to the Boao Forum for Asia (BFA)'s latest annual report released Tuesday. The region retains its position as the world's primary growth driver despite facing geopolitical headwinds, inflationary pressures, and supply chain uncertainties.
The BFA report highlights Asia's rising global economic influence, with its share of global GDP at market exchange rates expected to reach 36.4% in 2025 – up from 36.1% in 2024. When measured by purchasing power parity, Asia's economic footprint grows even larger, forecast to account for 48.6% of global output next year.
Analysts note this upward trajectory reflects resilience in domestic consumption patterns and strategic investments in digital infrastructure across multiple Asian economies. However, the report cautions that sustained growth requires addressing trade policy fragmentation and advancing regional integration initiatives like the Regional Comprehensive Economic Partnership (RCEP).
For investors and business leaders, the findings signal opportunities in Southeast Asia's emerging green tech sectors and India's manufacturing push. Academics point to the data as evidence of a continuing shift in economic power from West to East since the 2008 financial crisis.
