# AMRO forecasts 4.2% ASEAN+3 growth in 2025, driven by strong domestic demand and exports

- Link: https://www.thailand-business-news.com/asean/192731-amro-forecasts-4-2-asean3-growth-in-2025-driven-by-strong-domestic-demand-and-exports
- Published: 2025-02-10T09:14:00+07:00
- Author: News Desk

**AMRO forecasts 4.2% growth for ASEAN+3 in 2025, driven by domestic demand and 
exports, though trade tensions and higher tariffs may impact external demand.**

**AMRO also highlights the importance of policy support in maintaining economic 
stability and fostering growth in the region. Structural reforms, investment in 
infrastructure, and digital transformation are expected to play a pivotal role in
sustaining momentum. However, uncertainties surrounding geopolitical developments
and global financial conditions remain key risks that policymakers need to address
proactively.**

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## ASEAN+3 Economies Anticipate Steady Growth

In its January 2025 update of the AREO, AMRO anticipates that the ASEAN+3 economies
will maintain a growth rate of 4.2 percent in 2025. This projected growth is attributed
primarily to strong domestic demand and robust export activities within the region.
Despite this positive outlook, there are significant challenges that may impact 
the region’s progress, notably the rising trade tensions.

## Rising Trade Tensions Pose Challenges

The escalation of trade tensions, characterized by the imposition of higher tariffs,
poses a significant threat to external demand for the ASEAN+3 economies. These tensions
could potentially lead to a reduction in trade volumes, affecting the overall economic
growth. However, the region’s focus on bolstering domestic markets is expected to
help mitigate some of these external pressures.

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## Regional Strategies for Sustained Growth

To address these challenges, the ASEAN+3 economies are likely to emphasize strengthening
intra-regional trade and investment linkages. Policymakers are also expected to 
implement strategies that enhance economic resilience against external shocks. These
efforts aim at ensuring the region’s growth remains stable at the forecasted rate,
even amidst global economic uncertainties.

Source: [ASEAN+3 Macroeconomic Research Office ](https://amro-asia.org/quarterly-update-of-the-asean3-regional-economic-outlook-areo-january-2025)