Asia Outlook 2025: Three Critical Themes

This monologue podcast features Morgan Stanley's Chief Asia Economist, Chetan Ahya, presenting his outlook on Asia's economy in 2025. The podcast is structured around three key factors impacting growth: tariffs (the biggest concern, with phased implementation expected but potential for escalation), the impact of the Fed's actions on Asian currencies and central banks' responses, and the varying domestic demand outlooks for key Asian economies (positive for India and Japan, cautious for China). Ahya predicts Asia's growth to decelerate to 4.1% in 2025 from 4.5% in 2024, highlighting the potential for significant growth drag from tariffs and the challenges facing China's economy. The podcast concludes with a brief mention of the new Trump administration and its potential impact on Asia.