ADB's Economic Forecast for Southeast Asia 2025-2026: Indonesia's Outlook is Relatively High

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Erlina Fury Santika 10/04/2025 16:50 WIB

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The Asian Development Bank (ADB) projects economic growth for Southeast Asian countries. Indonesia's forecast is quite high, placing it among the top four.

Southeast Asia Economic Growth Projections: ADB Version (2025-2026)

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Southeast Asia Economic Growth Projections: ADB Version (2025-2026)

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The Asian Development Bank (ADB), in its April 2025 Asian Development Outlook (ADO) report, provides economic growth projections for Southeast Asian countries.

Vietnam, Cambodia, and the Philippines recorded the highest figures, with projected growth consistently above 6% in 2025 and 2026. Specifically, Vietnam is projected to grow by 6.6% in 2025 and 6.5% in 2026; Cambodia by 6.1% in 2025 and 6.2% in 2026; and the Philippines by 6% in 2025 and 6.1% in 2026. Among these top three, Cambodia and the Philippines' economies are predicted to strengthen into next year.

"In the Philippines, growth is expected to pick up to 6.0% in 2025 and 6.1% in 2026, driven by easing inflation, increased employment, and stable remittances, which will boost household spending," the ADB wrote in its report, quoted on Thursday (April 10, 2025).

The ADB added that ongoing public infrastructure projects are also expected to support the country's growth.

Indonesia's projection is relatively high, placing it fourth, with 5% growth projected for 2025 and 5.1% for 2026.

"Easier fiscal and monetary policies will support growth, along with the implementation of the government's new priority programs," the ADB wrote, explaining the factors driving Indonesia's economic growth.

Below Indonesia is Malaysia, with projected growth of 4.9% in 2025 and 4.8% in 2026. Growth in Malaysia is projected to slow due to weakening global demand impacting export growth. A similar situation is predicted for Vietnam.

Slowdowns are also predicted for Singapore, from 4.4% in 2024 to 2.6% in 2025 and 2.4% in 2026. The ADB attributed this to slowing exports due to global trade uncertainty and weakening external demand, which is expected to suppress growth.

Similarly, for Brunei Darussalam, growth is expected to slow from 4.2% in 2024 to 2.5% in 2025 and 2% in 2026. The main factor is the decline in the oil and gas sector due to falling global oil prices.

The ADB predicts average Southeast Asian growth at 4.7% for both 2025 and 2026, a slight decrease from the 4.8% estimate for 2024.

"Southeast Asia's outlook will be influenced by strong domestic demand and a gradual increase in tourist numbers. The region's economies are projected to remain solid," the ADB wrote.

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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ADB's Economic Forecast for Southeast Asia 2025-2026: Indonesia's Outlook is Relatively High

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