World Bank Projects Economic Slowdown for Most Asian Countries in 2025

The World Bank predicts a weakening global economic growth in 2025. In its report, Global Economy Faces Trade-Related Headwinds, several countries are experiencing economic slowdown, including those in Asia.

Several Asian countries, as noted by Databoks, such as India, are projected to have relatively high growth, at 6.3% in 2025. However, this is a decrease from the 2024 estimate of 6.5%. India's economic resilience is predicted to be relatively weak in 2026 and 2027, at 6.5% and 6.7% respectively.

Below India is Indonesia, with a projected growth of 4.7% in 2025, down from the 2024 estimate of 5%. In subsequent years, Indonesia's economy is predicted to strengthen slightly, reaching 4.8% in 2026 and 5% in 2027.

Similarly, China is projected to grow at only 4.5% this year, down from the 2024 estimate of 5%. China's economy is also predicted to decline in 2026 and 2027, reaching only 4% and 3.9% respectively.

In contrast, Pakistan was predicted by the World Bank to experience consistent growth until 2027, as shown in the graph.

The World Bank cites increased trade tensions and global policy uncertainty as the cause of slowing global economic growth. Growth is expected to reach only 2.3% in 2025, a slowdown compared to the previous year.

"This would be the slowest global growth rate since 2008, except during periods of outright global recession," the World Bank wrote in the report published on June 10, 2025.

A weak recovery is expected in 2026-2027, resulting in global output remaining below initial projections. Emerging market and developing economies (EMDEs) are not expected to catch up to developed countries in per capita income, nor make sufficient progress in reducing extreme poverty.

Economic prospects are highly dependent on global trade policies. The World Bank analyzes that if trade barriers increase or policy uncertainty persists, growth could be even weaker and could trigger financial stress.

"Other risks include economic slowdowns in major countries, escalating conflicts, and extreme weather events," the World Bank wrote.

However, if major countries reach lasting trade agreements, uncertainty and trade barriers could be reduced.

According to the World Bank, this situation underscores the need for strong international policy cooperation to create a more stable global environment and to assist developing countries affected by conflict and debt crises.

The World Bank also considers national measures necessary to control inflation and strengthen national budgets, including increasing domestic revenue and reprioritizing spending.

"To promote job creation and long-term growth in developing countries, institutional reforms, increased private investment, human capital development, and labor market improvements are needed," the World Bank wrote.

(Read: World Bank Projects Indonesia's Economic Growth at Only 4.7% in 2025)