However, the contribution of domestic demand to regional growth has slowed significantly since pre-pandemic times, indicating a need for policy adjustments.

Despite slower growth rates, Asia's resilience is supported by a strong export sector, a booming technology industry, and accommodative macroeconomic policies.

Krishna Srinivasan, the IMF's Asia and Pacific Department director, emphasized that Asia's high dependence on external trade makes it vulnerable to global shocks, underscoring the importance of regional integration.

The IMF is urging Asian economies to focus on boosting domestic demand and regional integration as a strategy to counteract risks from global trade tensions, with the potential to increase GDP by up to 1.4 percent over the medium term.

The IMF forecasts that Asia-Pacific's economic growth will slow from 4.5 percent in 2025 to 4.1 percent in 2026, but the region will remain the primary driver of global growth, contributing around 60 percent.