Asian economies continue to demonstrate robust growth, albeit at varying rates, influenced by sectoral and industrial dynamics (value chain participation) and policy stimulus measures.
Furthermore, Asia’s dominance in the information and communication technology (ICT) supply chain has intensified. In 2017, the region accounted for 75% of the global USD 2 trillion ICT goods market. By 2021, this share had risen to nearly 80% of the USD 3 trillion in shipments. Advanced East Asian economies alone trade 60% of global ICT goods annually, while emerging markets like Vietnam and Malaysia are rapidly increasing their share in this sector.
Fiscal and monetary policies, including stimulus packages and interest rate adjustments, have played a crucial role in supporting the recovery. Thanks to relatively benign inflation trends across the region, the monetary policy stance has never been as restrictive as in other Emerging Market regions. Therefore, the combination of more moderate inflation levels and less restrictive monetary policies has actually supported the growth recovery.
In 2025, monetary policy will become incrementally more accommodative. The easing cycle that just started should continue at a more moderated pace. Bank of Indonesia and the Central Bank of the Philippines are expected to have the most room for easing.
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