The International Monetary Fund (IMF) has revised its 2025 growth forecast for Asia upward to 4.5%, a 0.6 percentage point increase from its April estimate, underscoring Asia’s continued role as a growth driver in the global economy.
The revised outlook is driven by strong exports ahead of tariff implementations, rising intra-regional trade, and rapid adoption of AI-based technologies in economies like South Korea and Japan.
However, the IMF cautions that risks remain firmly on the downside. Trade policy uncertainty in the U.S., potential increases in global interest rates, and geopolitical friction could erode confidence and capital flows.
While Asia is expected to account for about 60% of global growth in both 2025 and 2026, the IMF underscores the fragility of the recovery and the need for continued structural reforms to sustain momentum.
For Asian media—including Nepal, Bangladesh, Bhutan—this is an opportunity to highlight both the upside in regional recovery and the caution flags that could affect smaller open economies.
