Amid weak global growth, East and South Asia emerge as pillars of resilience: UN report

East and South Asia continue to show strong economic growth, emerging as critical contributors to global stability despite a weak global growth forecast of 2.8% for 2025, according to the United Nations World Economic Situation and Prospects (WESP) 2025 report.

The report issued today highlights the resilience of the global economy, which has withstood multiple shocks, although growth remains below the pre-pandemic average of 3.2%. Persistent challenges such as weak investment, slowing productivity, and rising 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.

The report notes that economic prospects in East Asia remain stable, with the region expected to grow by 4.7% in 2025 and 4.5% in 2026. Low inflation and strong wage growth continue to fuel private consumption, while merchandise trade remains a major contributor. . Inflation in the region is expected to remain low at 1.4% in 2025.

Despite the moderate slowdown, the report notes that the Chinese economy remains a key driver, with growth expected to reach 4.8% in 2025. The country faces challenges such as tepid household consumption and a weak real estate sector, but the report notes that the government is responding with measures Financial and monetary to achieve economic stability.

In South Asia, the report says the Indian economy is expected to grow by 6.6% in 2025, supported by private consumption, investment and strong export growth in services and manufacturing. The report further notes that overall growth in South Asia is expected to reach 5.7% in 2025, with countries such as Bhutan, Nepal, Pakistan and Sri Lanka also recovering. However, South Asia is not without risks, including slowing external demand, rising 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 increasing risks from geopolitical tensions, trade disputes and the impacts of climate change, which could exacerbate food insecurity and economic instability. The report also highlights the growing demand for critical minerals, which provides a significant opportunity for many countries in the region to boost growth and increase public revenues, although this entails risks related to mismanagement, unsafe working practices, and environmental degradation.