Chief Economists Outlook May 2025

16Chief Economists Outlook Figure 13. East Asia and the Pacific in the remainder of 2025 Economic growth Very weak Weak Moderate Strong Very strong Inflation Fiscal policy Monetary policyVery low Low Moderate High Very high Looser Unchanged Tighter Looser Unchanged Tighter30 31 43 48 525766 361 9 Source: Chief Economists Survey. (2025, April). In the wider East Asia and the Pacific region, economies are navigating a complex external environment marked by slowing global trade, supply chain adjustments and geopolitical tensions. Most chief economists expect growth to be moderate (61%) or weak (30%). Inflation in the region is expected to remain moderate by almost two-thirds (66%) of respondents. The Bank of Japan’s gradual normalization of monetary policy is being closely observed, as policy-makers seek to balance inflation management with support for economic activity.36 While growth in the country remains muted, there are positive signs – the IMF’s latest projection of 0.6% growth in 2025 is an acceleration from 0.1% in 2024.37 36 Lewis, L. & Dempsey, H. (2025). 37 International Monetary Fund (IMF). (2025b).Latin America and the Caribbean Figure 14. Latin America and the Caribbean in the remainder of 2025 Economic growth Very weak Weak Moderate Strong Very strong Inflation Fiscal policy Monetary policyVery low Low Moderate High Very high Looser Unchanged Tighter Looser Unchanged Tighter55 55 7 21 39 50 1168 113835 10 Source: Chief Economists Survey. (2025, April).