The Asia-Pacific remains the fastest-growing region in the world, though higher tariffs and rising protectionism are likely to reduce demand for its exports and eventually weigh on activity, according to the International Monetary Fund.
Asia’s expansion in early 2025 was powered by brisk exports — fueled by frontloading ahead of expected tariff hikes — and a resurgent tech cycle, while easier policy and loose global conditions kept domestic demand motoring. Still, the region is expected to end 2025 with gross domestic product growth of 4.5%, slightly below the 4.6% recorded in 2024, the IMF said in a report released Friday. The region’s economy is then projected to slow further to 4.1% in 2026.