Asia is expected to continue serving as an “engine of growth”, driven by a sustained rise in domestic consumption, the adoption of emerging technologies like artificial intelligence, and diversification, senior executives said on Monday at the 19th Asian Financial Forum.

They highlighted the region’s resilience, citing its ability to recover from the COVID-19 pandemic to post modest growth in 2025 despite higher tariffs imposed by the United States. However, ongoing uncertainties over US trade policy and the AI boom are expected to pose headwinds for the region, they said.

Kevin Sneader, Goldman Sachs’ president for Asia-Pacific excluding Japan, said it is realistic to assume Asia needs to undergo a “thoughtful transition” amid technological shifts. He also expressed optimism, saying that “Asia is a very entrepreneurial place. … It’s a place where people do come up with the innovations that can allow for this growth to occur”.

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Sneader said the world is “on the verge of an economic soft landing, but a geopolitical hard landing”.

“There is real momentum coming out in 2025 in terms of economic growth,” he said, citing the growth rates in China, the US, and the European Union.

Sneader also highlighted the substantial capital deployment into AI — over $500 billion — that powers the world economy.

Sneader said that individual Asian countries have different growth drivers. China, for example, benefits from robust export and technology sectors, while India thrives on its strong demographic growth and a rising middle class.

“The Chinese economy is going to move forward,” said Zhu Min, a member of the senior expert advisory committee at the China Center for International Economic Exchanges (CCIEE).

Despite some challenges, Zhu said, there is no systemic risk for China, and he underlined China’s new growth models focusing on promoting domestic consumption and advancing manufacturing.

Ridha Wirakusumah, CEO of the Indonesia Investment Authority, said it is important to recognize the differences between developed and emerging economies. “We are all resilient (and) there are reasons to be optimistic. But let’s make sure that we also pay attention to those that are left behind,” he said.

Douglas Flint, chairman of the United Kingdom-based asset management firm Aberdeen Group, warned against “overdependence” on a single country for resources.

Flint also noted the weaponization of the US dollar and how it has led to diversification in global payment systems.

“I think we’re seeing diversification in central bank reserves because dependence on a single payment system or dominant currency is unsafe,” Flint said.

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“Now, the dollar will continue to be the dominant currency, but it will be less dominant, and there will be alternatives, I think, going forward, which is good,” he added.

Zhu from CCIEE said when the US changed its trade policy, it was “really destructive for the whole world”.

“It’s a wake-up call for everyone,” Zhu said, adding that resilience can be sustained through diversification of trade, supply chains, and capital flows.

He said there was increased investment by both the private and public sectors in technology, including AI, digitization, and energy. Governments worldwide have employed fiscal and monetary tools to support growth, Zhu added.

“I think those (factors) will continue to support the resilience of the global economy for this coming year,” he said.

Contact the writers at prime@chinadailyapac.com