The International Monetary Fund revised Asia’s economic growth forecast upward on Thursday to 4.5% in 2025, an increase of 0.6 percentage points from its estimate in April, though slowing from 4.6% last year. It projects growth to slow to 4.1% in 2026. However, the agency warned that renewed escalation in US-China tensions could deal a heavy blow to a region deeply integrated into global supply chains. Economic activity in the Asia-Pacific region was holding up better than expected in April, despite the area bearing the brunt of US tariffs, said Krishna Srinivasan, director of the IMF’s Asia and Pacific Department, at a news conference, as reported by Reuters. But he cautioned that significant downside risks remain, noting that the "dust on tariffs has not settled yet" and tariffs could still increase.