Amid Subdued Global Growth, East and South Asia Emerge as Pillars of Resilience: UN Report
According to the United Nations World Economic Situation and Prospects (WESP) 2025 report, East and South Asia continues to show robust economic growth, standing out as important contributors to global stability despite a growth forecast of 2.8% for 2025.
The report released today highlights the resilience of the global economy, which has weathered multiple shocks, although growth remains below the pre-pandemic average of 3.2%. Persistent challenges such as weak investment, sluggish productivity and high debt levels weigh on the global outlook. However, East and South Asia have emerged as bright spots due to strong private consumption, exports and targeted fiscal and monetary policies.
The report notes that East Asia’s economic outlook remains stable, with regional growth expected to reach 4.7% in 2025 and 4.5% in 2026. Low inflation and steady wage growth continue to boost private consumption, while trade in goods remains key Inflation in the region is expected to remain at the level of 1.4% in 2025.
Despite the moderate slowdown, the report said China’s economy remains a key driver, with growth forecast at 4.8% in 2025. The country faces challenges such as soft household consumption and a weak property sector, the report said that the government responds. fiscal and monetary measures aimed at stabilizing the economy.
In South Asia, the report said India’s economy is projected to grow by 6.6% in 2025, supported by strong growth in private consumption, investment and exports in services and manufacturing. By 2025, however, countries such as Bhutan, Nepal, Pakistan and Sri Lanka will also recover risks, including a slowdown in external demand, high debt levels and social unrest.
Despite these challenges, both regions are showing resilience with support for government policies such as fiscal reforms and monetary easing. The report warns, however, that East and South Asia faces growing risks from geopolitical tensions, trade disputes and the effects of climate change, which could exacerbate food insecurity and economic instability. The report also highlights the growing demand for essential minerals, which presents a significant opportunity for many countries in the region to boost growth and boost government revenues, although it comes with risks related to poor governance, unsafe labor practices and environmental degradation.