Asean-5’s gross domestic product (GDP) growth is projected to fall to just three percent in 2025 and as low as 1.5 percent in 2026 if knock-on effects from the United States’ tariffs continue, said Bloomberg Southeast Asia economist Tamara Mast Henderson.

This compares with the 4.5 percent growth figures in 2024, Henderson said, adding that the knock-on effects include reduced investment flows, weakening exports and declining business confidence.