East Asia and Pacific economies are expected to grow by 4.8 percent in 2025, according to the World Bank’s latest East Asia and Pacific Economic Update. This represents a slight decrease from 5.0 percent in 2024. Viet Nam is projected to lead regional growth at 6.6 percent, followed by Mongolia at 5.9 percent and the Philippines at 5.3 percent. China, Cambodia, and Indonesia are each expected to grow by 4.8 percent, while Pacific Island countries are forecasted at 2.7 percent and Thailand at 2.0 percent.
The report highlights that despite overall strong economic performance compared to other regions, job creation has not kept pace with growth. Most new jobs are in low-productivity and often informal service sectors, offering limited prospects for advancement. The labor force participation rate among women remains lower than men, and young people continue to face challenges finding employment.
Carlos Felipe Jaramillo, World Bank Vice President for East Asia and Pacific, stated: "The region faces a jobs paradox—relatively strong economic growth alongside insufficient creation of quality jobs. Bolder reforms to remove impediments to firm entry and competition would unlock private capital and allow dynamic and productive firms to flourish and create new job opportunities. The World Bank remains a steadfast partner to the region’s commitment to inclusive growth that matches the ambition of its people."
Recent data indicate mixed economic signals in the region. Retail sales are on the rise but consumer confidence has yet to return to pre-pandemic levels. Industrial production remains robust, but business confidence is subdued. Export activity increased before recent tariff hikes; however, new export orders have weakened.
Looking ahead, regional growth is expected to slow further to 4.3 percent in 2026 as trade restrictions increase and global uncertainty persists alongside domestic policy decisions that favor fiscal stimulus over structural reform.
The World Bank recommends that countries invest in human capital and digital infrastructure, promote competition in services, and align education with market needs as rapid technological change continues to reshape labor markets.
Aaditya Mattoo, World Bank East Asia and Pacific Chief Economist, said: “East Asia’s export-oriented labor-intensive growth lifted a billion people out of poverty in the last three decades, but the region now faces the twin challenges of trade protection and job automation. Reforms of the business climate and improvements in education could unleash a virtuous cycle between opportunity and capacity, leading to higher growth and better jobs.”
The World Bank uses a threshold of $6.85 per day for measuring poverty in upper-middle-income countries.