Asia Leads Global Growth: 4.7% GDP Surge and Digital AI Shift

Asia is set to lead global economic growth, with real GDP projected to rise 4.7% in 2025 and 4.5% in 2026, according to the latest data presented at the Boao Forum for Asia 2026 Annual Conference. Experts highlighted the region's resilient growth amid global uncertainties, citing its market potential, industrial complementarity, and digital technology dividends as key drivers.

'Asia's economy has demonstrated remarkable resilience in a rapidly shifting global landscape,' said Zhang Yuyan, Dean of the School of International Political Economy at the University of the Chinese Academy of Social Sciences. 'Our latest data shows 2025 growth exceeding initial projections of 4.5%, signaling strong fundamentals.'

The 2026 Asia Economic Outlook and Integration Report projects the region's share of global GDP, measured by purchasing power parity, to rise from 49.2% in 2025 to 49.7% in 2026, confirming Asia as a central engine of world economic expansion. 'Many believe the Asian Century is already here,' said Zhang Jun, Secretary-General of the Boao Forum.

South Asia Leads with Demographic Advantage

Regionally, South Asia is forecast to achieve 6.3% growth in 2025, the fastest in Asia. 'The region benefits from a young workforce — India, for example, has a median age of 28 — which continues to support high growth projections,' Zhang Yuyan noted. He cautioned, however, that rapid population growth poses challenges for job creation and may require structural adjustments in employment due to technological progress.

China and ASEAN Strengthen Regional Stability

Asia's overall 4.5% projected growth reflects structural optimization, energy transition, and deepening regional cooperation. After temporary fluctuations, intra-Asian economic interdependence stabilized in 2024, reinforcing the region's central role in global value chains.

Experts highlighted ASEAN's stable 70% internal dependency and rising reliance on China, underscoring its hub status. China continues to play a pivotal role in regional value chains, with ASEAN, Japan, and South Korea each maintaining over 20% dependence on China. In 2025, ASEAN and China marked six consecutive years as each other's largest trading partners.

'Vietnam, Singapore, and Malaysia are also rapidly ascending in the global value chain,' said Lin Guijun, former Vice President of the University of International Business and Economics.

China contributes roughly 30% annually to global economic growth, offering stability amid global uncertainty, according to Mu Hong, Vice Chair of the Boao Forum. 'China's new quality-driven productivity, powered by technological and industrial innovation, is converting into fresh economic momentum,' he added.

Denis Depoux, Co-Chair of Roland Berger's Global Management Board, described China as a 'new leader' in the global economy. 'China has evolved from being a producer and consumer to an innovator and trendsetter,' he said, highlighting deepening cooperation with Global South countries that offers crucial opportunities for international investors.

Jiang Xiaojuan, Chair of the National Data Expert Advisory Committee, noted that during China's 15th Five-Year Plan, industrial relations with developed countries are shifting from complementary division to horizontal competitive collaboration, demanding industry upgrades and strategic adaptation.

AI and Digital Transformation Shift Focus to Asia

Amid rising global uncertainty, growth increasingly depends on resilience and adaptability. The 2026 Asia and World Sustainable Development Report identifies the digital economy as a key growth engine. By 2025, Asia's digital economy reached $27 trillion, equivalent to the 2023 U.S. GDP or six to seven Apple companies in market value.

The global AI focus is shifting from Europe and the U.S. to Asia, driven by the region's large digital population, diverse application scenarios, and systematic policy support.

'Asia is building unique digital resilience,' said Hu Jianyu, Deloitte China Partner for Climate Change and Sustainability. He highlighted four trends: digital infrastructure shifting from coverage-driven to resilience-driven; inclusive AI applications reshaping productivity; digital supply chains upgrading with autonomy and regional collaboration; and green digital technologies leading low-carbon transformation.

China continues to lead in digital scale. By June 2025, its digital economy surpassed RMB 50 trillion, representing 43.1% of GDP, and is projected to exceed RMB 80 trillion by 2030. Chen Lan, Managing Partner at Deloitte China Research Center, noted that Asia's economic diversity, once seen as a challenge, now underpins regional resilience, forming a three-tier AI integration structure: leading, demonstrative, and emerging potential economies.

Challenges and Regional Collaboration Needed

Despite rapid digitalization, Asia faces cross-border challenges including uneven technical standards, geopolitical volatility, and AI governance. Chen Lan outlined three priorities: establishing regional data governance and joint supervision platforms for secure and compliant data sharing; focusing on key sectors like smart manufacturing and fintech to create scalable innovation models; and building transnational talent ecosystems to enhance Asia's strategic position in global AI competition.