Asia is considered the world’s largest and most populous continent in the world. Out of the world’s 62 major economies in the Euromonitor International macro model, five Asian countries (India, Vietnam, Indonesia, China, and the Philippines) are expected to have the highest real GDP growth in 2025. These are considered the fastest economy in Asia.
Global Economic growth has been driven in Asia since the outbreak of the war in Ukraine and a surge in inflation in 2022. Despite the global challenges, some emerging economies, particularly those from the Asia Pacific, are expected to sustain growth rates and lead the global economic expansion in 2025 and beyond.
Therefore, in this article, we will list the fastest-growing economies in Asia and everything you need to know about them.
Table of Contents
Does Asia Have Growing Economies?
Asian nations are advancing significantly in sectors like technology, agriculture, infrastructure, and human capital. They are not merely boosting their gross domestic product (GDP) at commendable rates.
The Asia Pacific region remains a key driver of global growth in 2023, despite facing challenges from changing global demand from goods to services and solid monetary policies.
Why Is Asia An Emerging Market?
Asia is considered an Emerging market because it is transitioning into a well-developed market economy. Asia has rapid GDP growth, growth per capita income, an established financial system infrastructure, and increasing debt and equity markets liquidity.
Emerging Asia refers to India, China, Indonesia, the Philippines, Thailand, Vietnam, and Malaysia. Also, Asia is home to some of the world’s most dynamic and fast-growing economies. It offers a wealth of opportunities to investors and policymakers looking forward to tapping into new markets and businesses.
Top 10 Fastest Growing Economies In Asia
Below are the top 10 fastest growing economies in Asia, where each country showcases good strategies and developments that fuel its economic growth:
1. The Philippines
The Philippines is considered the fastest-growing economy in Asia due to its strong domestic demand, continued public investment despite ongoing fiscal consolidation, and the effects of recent investment policy reforms, which could boost private investment. The Philippines’ growth was driven by robust capital formation and accelerated government spending.
The services sector is the largest contributor to the country’s GDP, accounting for approximately 62% of the total output. The country has been classified as a newly industrialized country with major contributions from its agriculture sector, tourism, electronics, and electrical sectors, generating billions of dollars in annual revenue.
2. India
India’s growth was boosted by public infrastructure investment and an upswing in household investment and real estate. Therefore, it is one of the fastest growing economies in Asia
The supply side was supported by a solid manufacturing sector, which grew by 9.9 percent, and resilient services activity, which compensated for underperformance in the agriculture sector.
The new economy, defined by the boom in service exports post-COVID-19, experienced robust growth in India and is emerging as the world’s largest hub for global capability centers (GCCs), which do high-end offshore services work.
3. Macau
Macao is one of the fastest-growing economies in Asia due to its access to a large workforce.
This factor enabled Macau’s economy to grow as the colony expanded its clothing and textiles manufacturing industry, legalized casino gaming, constructed new hotels, constructed infrastructure & malls, and developed its tourism industry. The economy is essentially reliant on tourism, despite efforts to diversify.
4. Bangladesh
Bangladesh is one of the fastest growing economy in Asia. Bangladesh has pursued export-oriented industrialization. The country was born out of war and has faced different challenges in the past.
Bangladesh experienced robust growth after the pandemic, with macroeconomic stability, a growing digital economy, growing trade flow, and infrastructure improvements.
Its singular focus on exporting textiles and garments delivered rapid growth, lifting millions out of poverty and winning the country’s prime minister, Sheikh Hasina, fame and admiration.
5. Indonesia
Indonesia is the fastest economy in Asia due to its robust economic policies, significant investment in infrastructure, stable government, growing digital economy, and young labor force.
Also, abundant natural resources have shaped the country’s economic performance and sustainable growth. Indonesia has also been increasingly open to international trade over the past half-century.
Indonesia is a country rich in natural resources, they hold large reserves of crude oil, copper, coal, and gas.
6. Vietnam
Vietnam’s remarkable performance is attributed to a robust recovery in exports coupled with strong domestic demand, Andrea Coppola, the World Bank’s lead country economist program leader for equitable growth. Thereby making it one of the fastest growing economies in Asia.
The development was largely driven by a huge shift from agriculture to manufacturing and services. The country is growing and getting richer due to its FDI attraction, global trade integration, bold economic reforms, and skilled workforce.
International trade also played a major role in their growth helping the country become a favorite destination to do business in the region. The priority sectors of the economy are the high-tech industry (electronics), mining, energy processing industry, chemical industry, and metallurgical.
7. Cambodia
Cambodia experienced a huge increase economically over the past two decades before COVID-19. It is among the fast growing economy in Asia.
The robust economic growth was supported by openness to trade, macroeconomic stability, strong tourist arrivals, real estate, the large inflow of foreign direct investments, and structural reforms towards export-oriented manufacturing. Also, The two leading sectors of the Cambodian economy are textiles and tourism.
8. Armenia
Armenia is one of the fastest-growing economies in Asia, and it is ranked 76th on the Human Development Index as of 2024. The Armenian economy is based on industrial output and mineral extraction.
Armenia is an industrial, agrarian country. The priority belongs to small-scale agricultural production. The GDP consists of agriculture at 3.11%, industrial production at 21.8%, transport at 5.1%, construction at 8.5%, and other sectors at 24.9%.
9. Uzbekistan
Uzbekistan is considered one of the fastest-growing economies in Asia. The rapid growth is being driven by a combination of factors, including a growing services sector, infrastructure development, and significant foreign investment.
Uzbekistan is a big producer of gold, with the largest open pit gold mine in the world. The country’s economic growth focuses on diversifying away from its traditional reliance on natural resources. Also, Uzbekistan has substantial deposits of strategic minerals, silver, gas, and oil.
10. China
The economic growth of China was driven by industrial production and manufacturing exports. China’s GDP is the largest in terms of purchasing power parity equivalence.
China’s solid economy has been based on investment and export-orientated manufacturing, an approach that has largely reached its limits and has led to environmental imbalances.
What Are The Fastest Growing Economies In Asia?
Some of the fastest-growing economies in Asia are India (6.3% GDP), the Philippines (5.9% GDP), Macao (29.16% GDP), Nepal (5% GDP), Cambodia (6.1% GDP), and others.
Which Country In Asia Is the Most Developed?
Some of the most developed countries in Asia are China, South Korea, Japan, Singapore, Vietnam, and others.
Conclusion
The economic growth outlook in Asia has started to improve recently; ongoing tightened financial conditions and persisting geopolitical pressures put a strain on the global economic recovery. As such, this article has listed the fastest growing economy in Asia, and we hope it is helpful to your search.
Reference
- euromonitor.com
- LinkedIn.com
- Global.oneibc.com
- Investopedia.com
