The Deputy Managing Director of the International Monetary Fund (IMF) delivered a virtual address on March 4, 2025, highlighting Asia's potential as a significant growth frontier. The event was attended by Japan's Finance Minister Kato and Governor Ueda.
Reflecting on Japan's post-World War II economic transformation, the IMF representative noted how Japan's infrastructure investments and reforms inspired other Asian countries to follow suit. This has resulted in Asia contributing over 60 percent of global growth today.
"Of course, Asia is a very diverse continent, with a mix of advanced economies, emerging and frontier markets, and small island states," said the IMF official. Despite these differences, openness and deepening economic ties have been crucial for success across the region.
However, global changes pose new challenges. "The world is changing... Trade is no longer the engine of global growth it used to be," he stated. Governments worldwide are recalibrating their policies in response to these shifts.
To adapt to this evolving landscape, three opportunities were highlighted for Asian countries: services-led growth, digitalization and AI development, and increased regional cooperation and trade. Services now employ about half of the region’s workforce, showing higher productivity than manufacturing in certain sectors. In terms of digitalization and AI, companies like Japan’s Rakuten and China’s Alibaba Group rival global giants such as Amazon.
"In AI development... an estimated 40 percent of jobs could be made more productive by AI," according to the IMF official. Regional cooperation also remains strong; intra-regional trade in Asia has increased significantly over recent decades.
The IMF aims to support member countries through economic analysis, policy advice, financing, and capacity development while adapting its approach to fit emerging market needs. The organization acknowledges Japan’s role in supporting low-income countries' capacity development efforts.
"You can count on the IMF in this journey," assured the Deputy Managing Director during his closing remarks at this key discussion on Asia's future economic trajectory.