SOUTHEAST ASIA OUTLOOK 2025

Southeast Asia Outlook 2025: Long-Term Growth Prospects Remain Intact

Economic Indicators Snapshot (2024 1 )

The global landscape is currently marked by considerable policy uncertainty, triggered by the United States introduction of broad tariffs. As of time of writing, the situation remains highly fluid and the long-term implications of these measures remain uncertain. As such, this report may not capture the full extent of its impact, and its findings may be subject to change as new developments emerge. The risk of a global economic slowdown has risen, and this would invariably temper Southeast Asia’s (SEA) economic growth forecasts over the short term. The impact of unfolding events on SEA will be complex and varied, and the uncertainty could prompt the need for further diversification of supply chains within the region, though this process will take time. Despite these challenges, SEA has demonstrated economic resilience over the past decade and is still projected to be one of the world’s fastest-growing regions, underscoring its long-term growth potential. This outlook is underpinned by its youthful demographics, expanding middle class, and developing infrastructure, making it an attractive growth market for companies looking to establish or expand their presence in the region. Southeast Asia remains one of the fastest growing regions globally. SEA economy is poised to grow by 4.8% year-on-year (yoy) in 2024, faster than 2023 growth of 3.9% yoy. Southeast Asia’s economic resilience has been underscored by several major economies surpassing their initial economic growth forecasts. This outperformance can be attributed to a combination of internal and external factors. Domestic consumer spending, a key driver of gross domestic product (GDP) growth for emerging SEA, has remained steady, amidst low unemployment and steady wage growth. External demand has remained robust amidst a continued tourism recovery, higher exports, and robust foreign direct investment. ECONOMIC RESILIENC E

PHILIPPINES • Population: 120 Mn • GDP: US$426 Bn • Unemployment: 4.4% • Income Growth 2 : 7.6%

VIETNAM • Population: 101 Mn • GDP: US$409 Bn • Unemployment: 2.1% • Income Growth 3 : 8.6%

THAILAND • Population: 69 Mn • GDP: US$497 Bn • Unemployment: 1.1% • Income Growth 2 : 3.9%

MALAYSIA • Population: 34 Mn • GDP: US$407 Bn • Unemployment: 3.5% • Income Growth 2 : 4.6%

SINGAPORE • Population: 6 Mn • GDP: US$414 Bn

INDONESIA • Population: 283 Mn • GDP: US$1,323 Bn • Unemployment: 5.2% • Income Growth 2 : 5.1%

• Unemployment: 1.9% • Income Growth 2 : 2.8%

Source: Moody’s Analytics, International Monetary Fund, General Statistics Office of Vietnam, Cushman & Wakefield Research Note: 1 Data updated on 22 January 2025 2 Real Disposable Income per Capita Growth Rate (%) 3 Average Monthly Income Growth Rate (%)

Legend:

Reflects Population Size

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CUSHMAN & WAKEFIELD