APEC Korea 2025: Sustaining Integration Amid Disruptive Change

As South Korea assumes the APEC chairmanship in 2025, it does so at a profoundly uncertain moment in the global economy.

- Dr. Bidisha Bhattacharya

The multilateral order, painstakingly built after the Second World War, seems to be eroding. Tariff walls continue to creep upward, supply chains are being rewired under geopolitical pressure, and the World Trade Organisation's dispute settlement system remains impaired. However, the Asia-Pacific region continues to anchor global commerce. As of 2022, the twenty-one member economies of APEC accounted for approximately 62% of the global GDP, nearly 48% of world trade, and close to 40% of the world's population. This sheer weight is enough to explain why APEC's deliberations in 2025 will matter far beyond its membership.

For South Korea, hosting APEC after more than two decades is not only symbolic but also strategic. It signals Seoul's intent to position itself as a middle power and rule-shaper in the Indo-Pacific's evolving economic architecture.

The themes that are of primary importance - Connect, Innovate, Prosper - neatly capture the dilemmas of the age:

1. how to preserve trade connectivity amid fragmentation

2. how to innovate and harness technology without deepening divides

3. how to deliver prosperity that is both sustainable and inclusive

The Macro Outlook: Slowing Momentum, Fragile Optimism

The economic outlook for the Asia-Pacific region is one of slowing momentum but enduring resilience. After surprising the world on the upside in 2024, regional growth is expected to moderate. According to the IMF's Regional Economic Outlook (April 2025), growth in Asia-Pacific is projected at 3.9% in 2025, down from 4.6% in 2024, although it is still well above the global average of 3%. Inflation is easing across most economies, rendering central banks some policy space; however, uncertainty over trade measures and financial conditions tempers optimism.