The International Monetary Fund (IMF) recently urged Asian economies to ramp up regional integration to better withstand global uncertainty. At a press conference, Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, emphasized that Asia remains “highly dependent on external trade,” making it especially vulnerable when global trade faces disruption.

Facing ongoing trade tensions and rising debt concerns in several countries, Srinivasan sees opportunities for Asia to pivot toward domestic demand-led growth and deeper regional collaboration. He noted that domestic demand’s contribution to growth in Asia-Pacific has slowed considerably compared to pre-pandemic levels, presenting an urgent need for fresh momentum.

IMF studies suggest that greater regional integration could lift Asia’s overall GDP by up to 1.4% in the medium term. Countries with more open markets and tighter links to global supply chains stand to benefit the most from advanced cross-border partnerships.

The IMF’s latest forecast projects Asia-Pacific growth will dip from 4.5% in 2025 to 4.1% in 2026. Still, Asia remains the world’s largest growth engine—contributing roughly 60% to global output this year and next. The region’s resilience owes much to proactive export strategies, rapid tech sector expansion, and supportive macroeconomic policies.

For investors, businesses, and policymakers, the message is clear: closer regional ties and stronger domestic engines are set to define the next phase of Asian growth. With international uncertainty persisting, eyes are on Asia’s ability to adapt, collaborate, and seize new opportunities.