Asia’s economy is on the rise, with recent reports highlighting significant growth in several key regions. According to the Asian Development Bank’s (ADB) July Outlook, the developing Asia and Pacific regions have seen upward revisions in their growth forecasts.
China’s Gross Domestic Product (GDP) expanded by 5.4% in the first quarter and 5.3% in the first half of this year, driven by policy-led boosts to consumption, robust industrial output, and strong export performance. This positive momentum showcases the country’s encouraging economic development.
Meanwhile, India witnessed a GDP growth of 7.4% during the same period, bolstered by higher net exports and substantial public sector investment. These figures reflect a vibrant economic landscape across some of Asia’s largest economies.
However, not all regions are experiencing the same upward trend. The Southeast Asian region faced significant downward revisions, with forecasts adjusted to 4.2% for 2025 and 4.3% for 2026. Similarly, East Asia’s 2025 growth forecast has been revised to 4.3%, and South Asia’s to 5.9%, largely due to weaker trade prospects stemming from tariff hikes by the United States.
The Pacific region’s growth remains steady at a forecasted 3.9% for 2025 but is expected to dip to 3.5% in 2026 because of a projected slowdown in visitor arrivals.
In its July External Sector Report, the International Monetary Fund (IMF) assessed imbalances among 30 of the world’s largest economies, noting the positive developments in China’s economy. However, the IMF also warned about potential global macroeconomic impacts resulting from import tariffs imposed by the U.S. administration on multiple trading partners. The report highlighted that while higher deficit barriers in trade deficit countries like the U.S. might aim to correct imbalances, tariffs could actually have a negative supply shock on the imposing country, minimizing their intended effect.
As Asia continues to navigate these economic shifts, the balance between growth and emerging risks will be crucial. Young people in the Global South should stay informed about these developments, as they could shape the economic opportunities and challenges of the future.
