Asian economies estimated to grow 4.5% in 2025: Report

​​​​​​​By Mucahithan Avcioglu

ISTANBUL (AA) - The Asian economy will grow by 4.5% in 2025, slightly higher than the 4.4% recorded last year, according to a report Tuesday by the Boao Forum for Asia (BFA).

"In spite of the persistently challenging external environment, Asian economies have leveraged their favorable conditions to reverse the declining trend and stabilize their economic growth," BFA said in its 2025 report on the economic outlook and integration progress for Asia.

International organizations, including the UN, World Bank and IMF universally project the global economy to stabilize or even resume expansion in the next two years.

Asia will continue to grow its share of the world economy, according to the report, from 36.1% in 2024 to 36.4% at market exchange rates in 2025.

It is also anticipated that its purchasing power parity share will also rise from 48.1% in 2024 to 48.6% in 2025.

The growth of the products trade is slowly rebounding, the report said, but the services trade is still growing rapidly, especially in the travel, transportation and digital services sectors.

China has contributed significantly to the expansion, as seen by the record levels of its commerce in products and services.

E-commerce and digital trade are increasingly becoming important growth drivers, especially in Southeast Asia as the Association of South East Asian Nations (ASEAN) bloc’s e-commerce gross merchandise value increased by 15% annually, demonstrating the region's swift digital transition.

It also stated that intra-regional foreign direct investment is still robust, with China, Japan, and ASEAN member nations ranking as the top investment destinations.