FX.co ★ IMF Revises Asia’s 2025 GDP Growth Higher to 4.5%

The International Monetary Fund (IMF) has revised its economic growth forecast for Asia, projecting a 4.5% growth rate in 2025, up by 0.6 percentage points from its April estimate. This marks a slight slowdown from last year's growth rate of 4.6%, with further moderation expected as growth is anticipated to decelerate to 4.1% by 2026. According to Krishna Srinivasan, the director of the IMF's Asia and Pacific Department, economic activity in the Asia-Pacific region has shown more resilience than anticipated in April, despite the region facing significant challenges from US tariffs. However, Srinivasan warned of potential downside risks, stating that the situation concerning tariffs remains uncertain, with the possibility of further increases still on the horizon. The IMF underscored the vulnerability of the region, emphasizing that any escalation in US-China tensions could severely impact an area heavily linked to global supply chains.