Southeast Asia Quarterly Economic Review: A Short-Term Spark?
Southeast Asia is charging ahead in 2025, with the region’s economy powering up on the back of a pre-tariff surge in trade and production. According to McKinsey’s latest Southeast Asia Quarterly Economic Review, Vietnam led the pack with nearly 8 % year-on-year growth—the country’s fastest pace in more than a decade—while other major markets saw solid gains driven by strong exports, industrial output, and resilient consumer spending. Low inflation and steady jobs added fuel to the region’s upbeat momentum. But the report also signals a reality check ahead: once the temporary tariff reprieve ends, growth may cool as early activity fades and global trade pressures return.