The issue of reciprocal tariffs remains uncertain, and its impact on the trade and economic outlook of each country should be monitored.
• China’s economy is expected to grow better than the previous estimate of 4.2% in 2025, while the China-US trade war has eased somewhat, but other risks remain. The People’s Bank of China has eased monetary policy through interest rate cuts and reductions in the reserve requirement ratio (RRR).
• Indonesia’s economy is expected to grow by less than 5% in 2025 after recording the lowest growth in three years during the first quarter of 2025. The Bank of Indonesia has cut interest rates to support the economy.
• Uncertainty over the outcome of trade negotiations has weighed on the Vietnamese dong, while Vietnam’s exports to the US have accelerated amid the temporary suspension of reciprocal tariffs.
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