SOUTHEAST ASIA OUTLOOK 2025

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

ASEAN’s Long-term Outlook

Vietnam’s economy continues to grow surpassing initial growth projections with an expected expansion of 7% yoy in 2024. The country attracted high levels of foreign direct investment (FDI) in 2024 as it solidifies its position as a regional electronics hub. Meanwhile, Malaysia and Singapore, integral components of the electronic supply chain, have benefited from recovering electronics demand and supply chain diversification in the region. The Philippines economy is supported by its expanding business process outsourcing (BPO) sector and recovering tourism industry. According to the Contact Center Association of the Philippines, contact center and BPO industries’ revenue are expected to reach US$32.16 billion in 2024, a 9% yoy increase. Thailand’s economy continues to recover, fueled by strengthening private consumption, increased manufacturing output, and a rebound in tourism, supporting a positive growth trajectory. Indonesia’s economy sustained stable growth, supported by its huge growing population and steady domestic consumption. However, cost of living pressures and rising taxes have raised concerns about the erosion of purchasing power of its middle-class population which would eventually impact overall private consumption. Following 2024’s outperformance, Southeast Asia’s economic growth is expected to moderate in 2025. That said, broad economic indicators remain encouraging with steady domestic consumption in the region, remaining supportive of growth. Over the longer term, the growth prospects for SEA remain positive. This growth will be underpinned by a growing middle class, urbanisation, higher infrastructure spending, growing exports, and relative resilience amidst a multipolar world order.

GDP: Projected to reach $4.5 trillion - the world’s fourth largest economy by 2030

Middle Class: Anticipated to grow from $172 million in 2010 to $472 million in 2030

Population: Projected to grow from 654 million in 2018 to 726 million in 2030 - third in the world

Growth Forecasts Across Major SEA Economies and Other Major Economies

Export: Could surge to $3.2 trillion by 2031, rising by nearly 90%

Digital Economy: To reach $1 trillion by 2030, almost four times the $263 billion achieved in 2024

Source: Moody’s Analytics, Cushman & Wakefield Research Note: Forecasts as of March 2025

Source: ASEAN Statistics, Boston Consulting Group, World Economic Forum, Cushman & Wakefield Research

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CUSHMAN & WAKEFIELD