Investment Rating - The report does not explicitly provide an investment rating for the industry Core Viewpoints - The report discusses the potential for Asia to achieve a sustainable rebalancing, suggesting that while the current account surplus may narrow, the consumption-to-GDP ratio is unlikely to change significantly, indicating that true and lasting rebalancing may not be achieved [2][8][35] Summary by Sections Current Account Trends - The report details the trends in bilateral current account balances between Asia and the US, highlighting that Asia's trade surplus with the US reached USD 760 billion, accounting for 55% of the US trade deficit [7][12] - It predicts that Asia's current account surplus as a percentage of GDP will narrow, primarily due to a slowdown in trade cycles and potential increases in purchases from the US [7][34] Economic Structure and Growth Model - Asia's persistent current account surplus reflects a manufacturing-driven growth model, with high savings relative to investment [8][24] - The report notes that Asia has maintained a current account surplus for 35 consecutive years, with a historical high of USD 1.1 trillion in Q1 2025, representing 4.1% of GDP [12][13] Investment Position - Asia's international investment position has grown to USD 45 trillion, surpassing both the US and Eurozone [49][50] - The report indicates that since 2018, Asia's holdings in US securities have increased by USD 2.8 trillion, now totaling USD 8.6 trillion, with the share of US assets in Asia's portfolio rising from 37% to 41% [65][72] Future Projections - The report forecasts a slight narrowing of the current account surplus to USD 0.9 trillion (3.1% of GDP) in 2025, down from USD 1.0 trillion (3.6% of GDP) in 2024 [34][36] - It emphasizes that the expected narrowing of the current account surplus should not be viewed as a sustainable rebalancing, as structural changes in savings and consumption patterns are not anticipated [35][66]