The 2025 Economic and Social Survey of Asia and the Pacific released on April 8 by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) shows that although the region drove 60% of global economic growth last year, many of its economies remain ill-prepared for climate shocks and the structural changes required for a transition to greener development models.

The report highlights a complex interplay between macroeconomic vulnerabilities and climate-related risks, which are undermining economic resilience. Key challenges include slowing productivity growth, rising public debt risks, and increasing trade tensions.

Armida Salsiah Alisjahbana, United Nations Under-Secretary-General and Executive Secretary of ESCAP, remarked that growing global economic instability and increasingly severe climate risks have created an unfavourable environment for fiscal and monetary policymakers.

She urged countries to adopt sound national policies and bolster regional cooperation to protect long-term growth prospects and tackle climate change.

Among the 30 countries analyzed, 11 were identified as particularly exposed to climate risks in terms of macroeconomic stability, namely Afghanistan, Cambodia, Iran, Kazakhstan, Laos, Mongolia, Myanmar, Nepal, Tajikistan, Uzbekistan, and Vietnam.

The report also points to wide disparities in climate preparedness across the region. While some countries have successfully mobilised climate finance and implemented green policy measures, others continue to face systemic constraints, including limited fiscal space, underdeveloped financial systems, and weak public financial management.

Despite relatively strong economic performance compared to other regions, the developing economies of Asia-Pacific are projected to see slower growth, down to 4.8% in 2024 from 5.2% in 2023 and an average of 5.5% in the five years preceding the COVID-19 pandemic. For the region’s least developed countries, growth is forecast at just 3.7% in 2024, far below the UN Sustainable Development Goal 8 target of 7% annual GDP growth.

To safeguard long-term prosperity, the report stresses the importance of proactive government support to move into higher-value, higher-productivity sectors. It also encourages the region to capitalise on its strengths in green industries and value chains as new drivers of growth, while boosting inclusive economic cooperation to meet the development goals of both developed and developing economies.