REGIONAL REPORT recovered to 5.8 per cent in the first three quarters of 2024 driven by strong public consumption and public construction , which was partially offset by the El Niño weather phenomena and subdued private consumption ,” said the IMF .
Amid heightened geopolitical tensions , the Philippines ’ economy is expected to remain robust , growing at an average rate of 6.0 per cent over 2024-2026 and sustaining poverty reduction , according to the Philippines Economic Update ( PEU ) released in December 2024 by the World Bank .
The positive outlook for the Philippine economy hinges on the country ’ s ability to rein in inflation , implement a more supportive monetary policy to foster business growth and sustain government spending on infrastructure to stimulate economic activity , while safeguarding against increased global policy uncertainty .
Several typhoons have affected millions of people , destroyed crops and property , damaged infrastructure and disrupted economic activity , particularly in tourism and construction . Growth , however , is expected to hit 6.1 per cent in 2025 and 6.0 per cent in 2026 . Robust growth is expected to boost poverty reduction due to improvements in household incomes , strong job creation and continuing economic recovery .
Vietnam
Transitioning to electric vehicles ( EVs ) and decarbonising Vietnam ’ s transport sector requires systematic policy and investment across five key areas , according to a new World Bank report : boosting EV supply and production , incentivising consumer demand , expanding charging infrastructure , preparing the power sector to absorb increasing power demand from EV charging and developing a skilled EV workforce . A November World Bank report —’ Viet Nam 2045 : Trading Up in a Changing World – Pathways to a High-Income Future ’— explores how the country can upgrade its participation in global value chains to achieve highincome status by 2045 .
“ Integration into global markets has been the key driver of Vietnam ’ s development success over the past 40 years , propelling one of the longest and fastest economic expansions in modern history . Today , Vietnam is one of the most open economies in the world with about half of the country ’ s GDP and every second job , directly and indirectly depending on exports ,” said the World Bank . Vietnam has set ambitious goals for the future , aiming to become a modern , high-income economy by 2045 .
“ To sustain rapid growth , Vietnam will need to transition from labourintensive , low value-added final assembly into higher value-added manufacturing and services ,” said Manuela V . Ferro , World Bank Vice President for East Asia & Pacific . “ In addition , amid global trade shifts and rising uncertainty , diversifying trade and investment partnerships will be essential for building resilience and ensuring long-term success .”
Thailand ’ s economy was projected to grow by 2.7 and 2.9 per cent in 2024 and 2025 , respectively
Inside an electric vehicle battery pack shop at a VinFast factory in Haiphong , Vietnam .
2024 and 2025 , respectively . Inflation remains low but was expected to increase gradually , and to return to target range ( 1 to 3 per cent ) by the end of 2024 .
“ Thailand ’ s economy continues to recover gradually . Economic activity expanded modestly by 1.9 per cent in 2023 and by 2.3 per- cent in the first three quarters of 2024 , primarily driven by private consumption and a rebound in tourism-related activities . International tourist arrivals recovered to around 90 per cent of pre-pandemic levels , although tourism receipts remain somewhat lower . Looking ahead , the cyclical recovery is expected to continue ,” said IMF staff .
India
India ’ s evolving fiscal management framework is at a critical juncture . Focusing on reducing fiscal deficits and controlling public debt , the Indian government has signalled a commitment to sustainable economic growth while balancing spending priorities . The Asian Development Bank ( ADB ) projected India ’ s GDP growth at 7 % for FY24 , buoyed by increased government spending and improvements in agricultural output .
The IMF has retained its growth forecast for India at 7 % for FY25 and 6.5 % for FY26 , acknowledging India ’ s stabilisation following the pandemic . However , it noted that post-pandemic pent-up demand , which once boosted growth , has now stabilised , underscoring India ’ s need to return to its long-term growth potential .
Republic of Korea
Image : Shutterstock . com .
Malaysia and Thailand
The Malaysian economy has performed strongly in 2024 , with low and stable inflation . Risks to growth are tilted to the downside , amid an uncertain global outlook , while risks to inflation are to the upside . Malaysia has passed key economic reforms , notably the passage of the Public Finance and Fiscal Responsibility Act and the successful electricity and diesel subsidy reforms .
“ Supported by strong domestic and external demand , the economic performance has significantly improved in 2024 . Growth is projected to moderate from 5.0 per cent in 2024 to 4.7 per cent in 2025 , reflecting a moderation in investment growth , including from rising global uncertainty ,” IMF staff projected in a preliminary report .
Thailand ’ s economy was projected to grow by 2.7 and 2.9 per cent in
“ The Korean economy has demonstrated remarkable resilience against global shocks . Reinvigorating growth and building resilience to the changing global landscape remain key priorities . Growth is projected at 2.0 per cent in 2025 and inflation is expected to stay near the target of two per cent in the near term . A near-term mix of monetary normalisation , exchange rate flexibility , gradual fiscal consolidation and targeted financial policies would help preserve macroeconomic stability and fortify the recovery ,” said IMF staff in November 2024 .
Tackling the declining labour force due to rapid population ageing , enhancing capital allocation and bolstering productivity remain crucial to boost growth potential , added the IMF . Advancing reforms would also help enhance resilience in a changing environment characterised by geoeconomic fragmentation , technological changes , population ageing and climate change . n
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