Asia 2025: Growth Leaders & Economic Risks Revealed

The Indo-Pacific region experienced a tumultuous 2025, marked by economic shifts, natural disasters, political upheaval, and a surge in cybercrime. From escalating scams to Gen Z protests and the rise of Chinese soft power, the year presented a complex mix of challenges and opportunities.

Worst Year: Cyber Scam Victims

A growing wave of cybercrime originating from Southeast Asia has defrauded billions of dollars from victims worldwide. Criminal gangs operating in Myanmar, Laos, and Cambodia employ tactics like “pig butchering,” where victims are groomed and then financially exploited.

The crisis gained attention with the kidnapping of Chinese actor Wang Xing, who was lured to the region under false pretenses and forced to work in a scam operation. US Attorney for the District of Columbia, Jeanine Pirro, stated that these scam centers are facilitating a “generational wealth transfer from main street America into the pockets of Chinese organised crime.”

Hundreds of thousands are reportedly enticed with fake job offers, then held against their will and forced to participate in these criminal enterprises. The operations are expected to become more sophisticated with the use of artificial intelligence and deepfakes.

Bad Year: Everyday Casualties

The death toll across Asia increased throughout 2025 due to natural disasters and events exacerbated by human factors. The March 28 earthquake in Myanmar killed over 3,600 people and displaced 200,000, even impacting a skyscraper construction project in Bangkok, resulting in further fatalities.

Floods, mudslides, and typhoons impacted millions across Sri Lanka, Thailand, Indonesia, Vietnam, Malaysia, and the Philippines, causing over 1,800 deaths. The year concluded with the devastating Wang Fuk Court apartment complex fire in Hong Kong, which killed at least 160 people due to inoperable fire alarms and substandard construction materials.

Mixed Year: Gen Z Uprisings

Generation Z, armed with social media and a desire for change, led protests in Nepal, Indonesia, the Philippines, the Maldives, and Timor-Leste against corruption, nepotism, and economic inequality. These protests succeeded in bringing down the governments of Nepal and Bangladesh.

While some concessions were achieved in other countries, the long-term impact of these uprisings remains uncertain. The generation’s ability to maintain momentum and translate frustration into constructive change is yet to be seen.

Good Year: Bamboo Economic Tactics

Asian economies demonstrated resilience in the face of tariffs imposed by the Trump administration, adopting flexible strategies to navigate the changing global economic landscape. This “bamboo economic tactics” approach led to reduced tariffs and new trade configurations.

Cooperation agreements, such as the one between India, Canada, and Australia on technology and innovation, exemplify the region’s pragmatic approach. Developing Asia achieved overall growth of around 5% for the year, remaining the fastest-growing region globally.

Best Year: Chinese Soft Power

China emerged as a significant force in soft power during 2025, rivaling the United States and South Korea. The launch of the low-cost AI model DeepSeek and the global popularity of the Pop Mart collectible Labubu demonstrated China’s growing influence in technology and creative content.

The success of Chinese brands like BYD electric vehicles, the animated film Ne Zha 2, Li-Ning sneakers, and Luckin Coffee further solidified China’s position as a rising soft power, earning it the distinction of best year in Asia.

Here’s to a better, safer and more peaceful year for all in 2026.

Curtis S. Chin is a former US ambassador to the Asian Development Bank, the managing director of advisory firm RiverPeak Group and chair of Asia fellows at Milken Institute. Jose B Collazo is an analyst focusing on the Indo-Pacific. The views expressed here are the writers’ own.