Asia Pacific News
LAST UPDATE: June 26, 2025
China can maintain high growth and transition to consumer-led economy, premier Li says
Premier Li Qiang expressed confidence that China can sustain a “relatively rapid” growth rate (~5% target for 2025) while transitioning to a consumer-driven economy. He highlighted slower household consumption (~39% of GDP vs ~54% in OECD) and called for policies to boost household incomes, employment, pensions, and social safety nets to support this shift (reuters.com).
Insight
Li’s remarks signal a dual policy focus on growth and structural reform. Successfully shifting to consumer-led growth could stabilize the Chinese economy long-term and expand new market opportunities globally, though managing this transition remains politically and practically challenging.
China’s premier vows to ‘open its doors wider’ to trade and tech industry
At Summer Davos in Tianjin, Premier Li Qiang vowed to further open China’s economy—especially in trade and AI technology—vitally opposing global supply-chain fragmentation. He emphasized China’s willingness to share AI innovations (like DeepSeek and Alibaba models) and backed a multipolar international currency system .
Insight
This indicates a strategic shift: positioning China as an open, collaborative global player while resisting protectionist trends. Embracing a multipolar currency approach reflects Beijing’s effort to reduce USD dependency and expand global financial influence.
Japan government to consider cutting this year’s growth forecast, sources say
Japanese officials are considering lowering their FY ending March 2026 GDP growth forecast from ~1.2% to under 1%, citing weaker global demand and U.S. tariffs. A revised estimate is expected by end‑July. The BOJ recently lowered its FY2025 growth forecast from 1.1% to 0.5% in May .
Insight
Japan is under pressure from external shocks and sluggish global trade. A downgraded forecast suggests a coordinated fiscal and monetary policy response, potentially influencing state budget and economic stimulus plans.
IMF asked about Bangladesh’s national election before disbursing loan tranches, says finance advisor
Finance Advisor Salehuddin Ahmed said the IMF requested a confirmed date for the national election (expected in February) before disbursing the 4th and 5th tranches (approx. $1.34 bn) of a total $4.7 bn loan package .
Insight
This shows the IMF is intensifying its scrutiny of political timelines in lending decisions—linking macroeconomic support to governance transparency. It underscores how political credibility and institutional stability are integral to sustaining economic reforms and foreign financing.
Vietnam C.Bank Governor Discusses Quota Reform, Cooperation with IMF
According to IMF Article IV consultation details from June 11–24, the State Bank of Vietnam Governor engaged with IMF on topics including quota reform, deeper bilateral cooperation, and macro-financial coordination. The IMF mission highlighted Vietnam’s robust 2024 growth (7.1%) and 2025 Q1 expansion (6.9%) .
Insight
Vietnam is enhancing its engagement with global financial institutions through structured Article IV reviews. Their discussion on quota reform suggests Vietnam is preparing for expanded IMF influence, signaling improved macroeconomic governance and commitment to international financial norms.
Vietnam PM expects US trade deal before July tariff deadline
Prime Minister Pham Minh Chinh said he expects a bilateral trade deal with the U.S. before early July to avoid the reinstatement of a 46% tariff on Vietnamese exports. Negotiations have progressed, with common understanding on tariffs. Vietnam is also working to decrease reliance on Chinese tech in export goods and curb illegal trans‑shipment (reuters.com, reuters.com).
Insight
Chinh’s optimism reflects strategic urgency: Vietnam is aiming to secure tariff relief that could greatly impact its export-driven economy. The move to reduce Chinese tech dependency shows alignment with U.S. demands, which could foster deeper economic integration with America.
Indian economy resilient despite global flux, central bank bulletin says
The RBI’s June bulletin reported India’s strong resilience in May 2025, supported by a 50‑basis‑point rate cut, lower reserve ratio, robust industrial, services, and agricultural output, and suppressed inflation (2.82%, lowest in 6+ years). RBI will remain data‑driven amid geoeconomic uncertainties .
Insight
The RBI’s proactive easing signals confidence in internal growth engines. Despite global uncertainties, policymakers are prioritizing domestic momentum, keeping policy flexible to sustain expansion and inflation control.
Singapore PM touts good ties with US, China amid trade tensions
PM Lawrence Wong emphasized during a visit to Beijing and at Summer Davos that Singapore maintains close, balanced ties with both the U.S. and China, aiming to sustain multilateral cooperation and resilience amid escalating trade tensions .
Insight
Singapore’s diplomacy reflects strategic hedging: deep engagement with both superpowers aims to maintain trade and stability, underscoring its role as a pragmatic, neutral anchor in regional economic architecture.
