World Bank lowers Asia-Pacific growth forecast for 2025

On April 25, the World Bank (WB) in Vietnam released the report "East Asia and Pacific Economic Update" for April 2025, in which it forecasts that regional growth will decrease to 4% in 2025, compared to 5% in 2024.

The East Asia-Pacific region's economy will be heavily impacted by ongoing trade conflicts. Photo: Hoang Linh.

Amid escalating trade tensions, weakening global demand and lingering economic uncertainty.

According to the 2025 regional economic update report, the World Bank forecasts that growth in the East Asia and Pacific region will slow to 4% in 2025, compared to 5% in 2024.

The World Bank said business and consumer confidence in the region is being affected by global uncertainty, causing investment and consumption to decline.

Trade restrictions and slowing global growth continue to weigh on the region’s exports, but poverty in the region is expected to continue to decline, the World Bank said.

The WB forecasts economic growth prospects for some countries in the region in 2025 as follows: China 4%; Cambodia 4%; Indonesia 4.7%; Malaysia 3.9%; Mongolia 6.3%; Laos 3.5%; Philippines 5.3%; Thailand 1.6%; and Vietnam 5.8%...

In light of the above situation, the World Bank report proposes three policy directions to enhance resilience for the East Asia - Pacific region: Taking advantage of new technology to improve productivity and create jobs (as in Malaysia and Thailand); reform to promote competition, especially in the service sector (typically in Vietnam); and expanding international cooperation to strengthen economic strength.

World Bank Vice President for East Asia and the Pacific Manuela V. Ferro said countries in the region have the opportunity to improve their economic prospects by promoting investment in new technology, implementing strong reforms and strengthening international cooperation.

Source: https://hanoimoi.vn/ngan-hang-the-gioi-ha-du-bao-tang-truong-chau-a-thai-binh-duong-nam-2025-700354.html