current
Asia Domestic Resilience
Asia's economies, particularly India and ASEAN, are demonstrating robust domestic growth, driven by internal demand and intra-regional trade, mitigating the impact of global trade uncertainties.
Timeframe
near-term
Categories
Impact areas
Detailed Analysis
Despite trade tensions and tariff risks stemming from the new US administration, Asia's economic outlook remains positive, fueled by strong domestic demand in India and ASEAN, and increased stimulus measures in China. This internal resilience is further bolstered by growing intra-regional trade and investment, reducing reliance on external markets. The report highlights a shift in focus towards domestic leaders within Asian markets, emphasizing companies with strong national brand franchises and limited exposure to US markets.
Context Signals
Asia ex-Japan GDP growth forecast at 4.4% in 2025
59% of Chinese consumers expect economic recovery within 2-3 months
India and ASEAN projected to achieve 6.5% average per-capita GDP growth over 2023-2026
Edge
Increased focus on domestic consumption within India and ASEAN could lead to the emergence of new market leaders in consumer goods and services.
Intra-regional trade and investment could foster greater economic integration within Asia, creating a more unified and powerful economic bloc.
The rise of high-end manufacturing in Asia, driven by policy support and global competitiveness, could reshape global supply chains and challenge established manufacturing hubs.