Goldman Sachs Anticipates Mild Slowdown in Growth for the ASEAN Region

In a note published by the Goldman Sachs research team, it was stated that the real GDP growth of five ASEAN countries is expected to be slightly moderate in 2025 amid increasing uncertainty in global trade policies. Goldman Sachs forecasts that Singapore and Malaysia, small and open economies, are likely to experience the most slowdown in growth rates above the trend in 2024. In contrast, it mentioned that larger, domestically-focused economies such as Indonesia and the Philippines could benefit from low food inflation and a loosening monetary policy, while remaining somewhat isolated from the rising global trade uncertainty. Goldman Sachs expects fiscal policy to support the Thai economy due to obstacles to domestic investment and global trade, estimating that the real GDP growth of the five ASEAN countries will decline from 4.5% in 2024 to 4.3% in 2025.