According to the United Nations World Economic Situation and Prospects (WESP) 2025 report, despite a low global growth projection of 2.8% for 2025, East and South Asia are showing strong economic growth as critical contributors to global stability.
The report, released today, highlights the resilience of the global economy, 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, driven by strong private consumption, exports and targeted fiscal and monetary policies.
Economic prospects for East Asia remain stable, with the region expected to grow at 4.7% in 2025 and 4.5% in 2026, the report notes. Low inflation and strong wage growth are fueling private consumption, while commodity trade remains a major contributor. Inflation in the region is expected to remain muted at 1.4% in 2025.
Despite a moderate slowdown, the report reads that China's economy is a key driver and is expected to grow by 4.8% in 2025. The country faces challenges such as hot household consumption and a weak real estate sector, but the government is responding, the report said. Fiscal and fiscal measures to stabilize the economy.
In South Asia, India's economy is projected to grow by 6.6% in 2025, driven by strong export growth in private consumption, investment and services and manufacturing, the report said. The report added that overall growth in South Asia is expected to be 5.7% in 2025, with countries such as Bhutan, Nepal, Pakistan and Sri Lanka also recovering. However, South Asia is not without risks, including reduced external demand, high debt levels and social unrest.
Despite these challenges, both regions are showing resilience, supported by government policies such as fiscal reforms and monetary easing. However, the report warns that East and South Asia face growing risks from geopolitical tensions, trade disputes and the effects of climate change, which could exacerbate food insecurity and economic instability. The report also points to the increasing demand for critical minerals, presenting a significant opportunity for many countries in the region to grow and raise government revenues, despite risks associated with poor governance, unsafe labor practices and environmental degradation.