Arab Press

بالشعب و للشعب
Saturday, Jul 12, 2025

Asia’s growth to outpace both US and Europe this year, Morgan Stanley says

Asia’s growth to outpace both US and Europe this year, Morgan Stanley says

Driven by strong domestic demand, Asia’s economic growth will outpace both the US and Europe this year, according to Morgan Stanley.
“The big argument that we’ve been making ... for Asia, including Japan, to outperform versus US and Europe – is the fact that there is domestic demand strength,” Chetan Ahya, chief Asia economist at the investment bank , told CNBC’s “Street Signs Asia” on Monday.

“China is one. It’s going through a rebound quite nicely because of reopening, but also for fiscal and monetary policy being supportive.”

The economist added that three other large Asian economies – India, Indonesia and Japan – are also showing robust domestic demand.

“We are expecting the region’s growth to outperform by about 500 basis points by the end of this year, which is essentially in the fourth quarter of this year,” said Ahya.

The economist’s forecast for the region corresponds with the latest International Monetary Fund view that Asia Pacific remains a dynamic region despite a challenging year for the world economy.

“We project the region will contribute more than 70 percent of global growth this year as its expansion accelerates to 4.6 percent from 3.8 percent last year,” the IMF wrote in a blog.

China’s recovery is “going better than everybody’s expectations,” said Ahya, and he doesn’t see inflation as a major risk for the country.

“Inflation is a lagging data point and I don’t think we should look at the inflation number and conclude that the recovery is not going on track,” he noted, adding China’s property sector is “rebounding so sharply” which will add to the growth momentum.

More people in China want to buy houses again, according to a first-quarter survey recently released by the People’s Bank of China. The increase follows the end of China’s pandemic controls.

The World Bank also expects East Asian and Pacific economies to grow more than it previously estimated due to a sharp rebound in activities in China.
India also shows strong growth potential due to cyclical factors, said Ahya.

“The banking system has been cleaned up, [the] corporate sector has delivered,” noted the economist.

As a result, there has been a “nice acceleration in credit growth” because there is risk appetite seen in both borrowers and lenders, he added.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×