The launch event of the Asia House Annual Outlook brought together prominent figures from the business and economic sectors in London. Mr. Zheng Zeguang, China’s Ambassador to the UK, delivered the keynote address, asserting China’s resilience in facing economic challenges and its ability to turn uncertainty into opportunity…writes Anasudhin Azeez
The annual global economy prediction from Asia House highlights that Asian economies, particularly India, Vietnam, and the Philippines, will once again lead the world in 2025. This growth will be fuelled by increased regional trade, technological advancements, and growing consumer demand.
According to Matilda Buchan, Senior Analyst at Asia House, Asia’s economies are projected to grow by an estimated 4% in 2025, significantly outpacing the global average of 2.7% as forecasted by the World Trade Organization (WTO) for 2024. India, Vietnam, and the Philippines are expected to be the standout performers, while Indonesia’s growth will also remain robust. However, China’s expansion is anticipated to slow to a rate between 3.5% and 4.5%, prompting analysts to watch for potential stimulus measures to sustain its growth.
The launch event of the Asia House Annual Outlook brought together prominent figures from the business and economic sectors in London. Mr. Zheng Zeguang, China’s Ambassador to the UK, delivered the keynote address, asserting China’s resilience in facing economic challenges and its ability to turn uncertainty into opportunity.
Lord Stephen Green, Chairman of Asia House, and Michael Lawrence OBE, Chief Executive of Asia House, also addressed the audience. Michael Lawrence chaired a panel discussion featuring esteemed participants such as: Mallika Ishwaran, Chief Economist at Shell; Michael Birshan, Senior Partner and Global Leader of Strategy & Corporate Finance Practice, McKinsey & Company; Dr. Gerard Lyons, Senior Independent Director, Bank of China UK and Dr. Jin Keyu, Professor at Hong Kong University of Science and Technology (HKUST).
AI and digital transformation will be the main drivers of Asia’s growth in 2025, raising productivity, expanding financial inclusion, and opening new markets. China’s leadership in e-commerce continues to dominate, with Southeast Asia—particularly Indonesia—poised for rapid growth in the sector.
In renewable energy, Asia is set for significant progress. China will continue to lead global production, while India and Vietnam will make strides in implementing compliance-based carbon markets. The expansion of green bonds, blended finance, and harmonized regional taxonomies will further propel green finance.
The Annual Outlook report provides an in-depth analysis of key trends shaping the region, based on expert roundtables and exclusive business surveys. Asian economies are leveraging technology and green finance to drive innovation and adapt to a rapidly shifting global landscape. With Donald Trump’s anticipated return to the White House, Asia faces heightened challenges such as potential trade disruptions and rising protectionism. Despite these risks, stronger intra-regional trade, deeper connections with the Middle East and the Global South, and a strategic focus on self-reliance in critical sectors like semiconductors are expected to counterbalance the challenges. Asia is capitalizing on technological strengths in e-commerce, artificial intelligence (AI), and semiconductor production to reshape global industries. Significant growth in household consumption across Southeast Asia, aided by easing inflation, will further bolster economic activity.
While Asia is positioned for robust growth, significant risks remain. The ongoing technological rivalry between the US and China is likely to result in tit-for-tat policies that restrict exports of critical components, potentially opening opportunities for non-aligned nations like Malaysia and Singapore. The return of Donald Trump as US President may accelerate de-risking strategies, reroute trade, and challenge Asia’s export-led growth. Additionally, conflicts in the Middle East and between Russia and Ukraine may disrupt commodity prices and trade routes. China’s slowdown, potential US inflation spikes, and their impact on the US dollar could affect Asia’s trade terms and dollar-denominated debt.
AI and digital transformation will be the main drivers of Asia’s growth in 2025, raising productivity, expanding financial inclusion, and opening new markets. China’s leadership in e-commerce continues to dominate, with Southeast Asia—particularly Indonesia—poised for rapid growth in the sector.
In renewable energy, Asia is set for significant progress. China will continue to lead global production, while India and Vietnam will make strides in implementing compliance-based carbon markets. The expansion of green bonds, blended finance, and harmonized regional taxonomies will further propel green finance.
The Asia House Annual Outlook underscores Asia’s capacity to lead global growth in 2025 despite heightened geopolitical and economic challenges. By turning turbulence into opportunity, leveraging technological advancements, and fostering regional trade, Asian economies are positioned to thrive. The insights and forecasts presented in the report demonstrate the resilience and adaptability of the region, reaffirming its role as a key driver of global economic progress.
ALSO READ: Havering set for £66m boost for schools expansion
ALSO READ: Starmer Welcomes Gaza Ceasefire Deal
