According to Nomura, Asia Faces Turbulence in 2025

According to a note by Nomura economists, Asia is expected to face turbulence in 2025. The economists believe that the region will likely navigate into "choppier waters" starting from the second quarter, largely due to the effects of Trump 2.0. Strong demand for artificial intelligence and pre-loading in exports are expected to provide some growth support in the first quarter. However, weakening import demand, slowing semiconductor sales growth, and softer domestic demand may lead to a sharper sequential slowdown starting from the second quarter. Meanwhile, economists indicate that deflationary pressures resulting from the redirection of Chinese exports are expected to continue, contributing to deflation in Asia.