Asia: Economic overview

Asia is the fastest-growing major economic region in the world. It is projected to contribute around 60% of global economic growth. 

The region encompasses highly developed economies such as Japan, Singapore and South Korea, alongside rapidly expanding emerging markets led by China, India, Indonesia and Vietnam. It is a critical driver of global trade, consumption and investment.

According to the latest International Monetary Fund (IMF) outlook (April 2026), Asian economies were largely able to withstand various domestic and global challenges; they showed resilience in the face of trade tensions in 2025.

However, the war in the Middle East has led to a testing period. Inflation has risen due to higher gas and oil prices, leading to increased imports. This has made it difficult for governments to manoeuvre from a policy perspective, especially in countries that are more reliant on fuel imports, such as Japan and South Korea.

Gross domestic product (GDP) growth in the Asian economy is expected to fall to 4.4% in 2026 compared with 5.0% in 2025.

Waning demand is the main factor behind a decline in GDP growth in advanced Asian economies in particular. Nevertheless, globally, Asia remains a leading region for economic growth.

Table 1. Real (inflation-adjusted) GDP growth in selected Asian countries (%)

Source: IMF, April 2026

China and India are both huge markets, together representing 36% of the world’s population (World Bank, 2025).

The IMF expects the populations of the Philippines and Malaysia to increase by over 5% between 2025 and 2030; the populations of Indonesia and India are predicted to grow by more than 4% over the same period. China’s population is expected to shrink by 1%.

Some Asian markets not only have large, growing populations (resulting in increasing consumer demand) but are forecast to become wealthier.

According to IMF forecasts, average annual GDP per capita growth over 2027–2031 is projected at around 11% in India, 9% in the Philippines, 8% in Indonesia and 7% in China.

Despite a significant increase in population, India is forecast to have the highest GDP per capita growth rate than other Asian countries, thanks to real GDP growth.

Asia’s population is forecast to reach 4.86 billion in 2026, an increase of 2.4% from 2022. According to United Nations population data, this figure is then expected to rise to 5.28 billion in 2050 and then fall to 4.61 billion in 2100.

India is expected to have the highest population by the end of the century (1.51 billion), an increase of 6% between 2022 and 2100.

Malaysia, however, is expected to have the largest population increase (27%) over the same period.

With a growing population, rising incomes and expanding middle classes, Asia remains one of the most important long-term growth markets for agri-food exporters, including the UK.