We are expecting another year of below-trend economic growth in 2025 across Asia, as subdued exports, worsening labour markets and tighter fiscal policy weigh on demand. Inflation is back to target nearly everywhere. With growth set to struggle and oil and food price inflation likely to fall back, price pressures are likely to remain low. We expect the central banks of Korea, India and Thailand to join Indonesia and the Philippines by cutting rates over the coming months. Taiwan (strong growth) and Malaysia (inflation concerns) are two that are likely to remain on the sidelines. In most places, rate cuts are likely to be a little more aggressive than financial markets are expecting.
Note: Are you going to be in Hong Kong on 17th October? Join our economists for a roundtable discussion all about the US election and how its outcome could shape Asia’s economies and financial markets. For registration details click here.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services