Asia Emerges as the New Global Growth Core — IMF Expected to Upgrade Regional Outlook

Asia Emerges as the New Global Growth Core — IMF Expected to Upgrade Regional Outlook
14 October 2025 | Macro Outlook Desk

While Western economies show visible signs of fatigue, global attention is rapidly shifting to Asia as the only region maintaining strong growth momentum, ahead of tonight’s IMF World Economic Outlook (WEO) release.

According to early briefings cited by Bloomberg and Reuters, the IMF is expected to revise down growth forecasts for the U.S. and Eurozone, while upgrading projections for India, Indonesia, the Philippines, Vietnam — and signaling improved momentum for Thailand as tourism and manufacturing flows begin to recover ahead of 2026.

“Asia is no longer just the world's factory — it is becoming the world's growth engine,” said a strategist at BlackRock, referring to what major funds now call the “Asia Premium Era.”

Analysts note that capital rotation from West to East is becoming more pronounced. In the past two weeks alone, foreign fund inflows into ASEAN equity ETFs surged, while flows into European markets saw net withdrawals. The Indian Sensex and Indonesia IDX Composite both hit new technical breakout zones, signaling investor conviction that growth leadership is shifting.

With IMF set to confirm this shift tonight, traders across Asia are preparing for a potential sentiment pivot, where emerging markets could outperform developed markets for the first sustained cycle since 2009.