Growth in EAP to slow down to 4% in 2025 from 5% in 2024: World Bank

Prospects for higher or lower growth depend partly on broader growth prospects, but also on how country policies respond to uncertainty in the global environment, the bank said in its EAP Economic Update April 2025.

Poverty rates in the region will continue to decline. Around 24 million people in the region are projected to escape poverty between 2024 and 2025, based on the upper-middle-income poverty line, the bank said in a release.

China is expected to grow at 4 per cent this year; Cambodia at 4 per cent; Indonesia at 4.7 per cent; Malaysia at 3.9 per cent; Mongolia at 6.3 per cent; Laos at 3.5 per cent; the Philippines at 5.3 per cent; Thailand at 1.6 per cent; and Vietnam at 5.8 per cent.

Growth in the Pacific Island countries is projected at 2.5 per cent this year.

The EAP region outpaced most regions in economic growth last year. To sustain this momentum and generate jobs, EAP countries must navigate global uncertainty and tackle long-term challenges tied to shifting global integration, climate change, and demographic trends, the report noted.

Growing global uncertainty is having an impact on business and consumer confidence, inhibiting investment and consumption. Trade restrictions are expected to affect the region’s exports, while slower global growth is likely to further reduce external demand.

Fibre2Fashion News Desk (DS)