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Australia has slipped back behind Russia in the 2025 Asia Power Index rankings due to its economic and military resources decline compared to other countries in the region.
The United States remains the most powerful country in Asia but falls to its lowest level since the index’s inception in 2018, according to the latest edition of the Lowy Institute’s Asia Power Index, published on 26 November.
The seventh edition of the annual assessment, authored by Susannah Patton and Jack Sato, evaluates the power of 27 countries and territories across Asia, based on 131 indicators across eight thematic measures, including military capability and defence networks, economic capability and relationships, diplomatic and cultural influence, as well as resilience and future resources.
In 2025, the top five countries for overall power include the United States, China, India, Japan and Russia. Australia has dropped one place in this year’s ranking to sixth.
“Australia recorded a small decline as it struggled to match others’ economic and military resources. Benefiting from the support of authoritarian partners China and North Korea, Russia regained fifth place in the overall rankings,” according to a statement from the index.
“Australia faces a long-term challenge to maintain relative power in Asia. It slipped back below Russia in the 2025 Asia Power Index rankings. Its economic and military resources have declined relative to other countries, meaning it will need to work harder with what it has to maintain its regional influence.
“China continues to erode the United States’ advantage in military capability, has weathered Washington’s coercive economic policies, and has benefited from uncertainty about the Trump administration’s approach to Asia, with its diplomatic influence reaching an all-time high for any Asia Power Index country.
“India has maintained its position as the third-most powerful country in the region and reached major power status in 2025, spurred by its strong economic growth and increasing military capability.”
The institute stated that US President Donald Trump’s administration policies have been a net negative for US power in Asia, but their true effect will only be felt in the years ahead.
“While China has closed the gap with the United States to its narrowest margin since 2020; while India’s power in Asia continues to grow steadily, and in 2025 passed the threshold defined by the Asia Power Index for major power status,” according to the index.
“In 2025, Russia’s power in Asia was boosted by growing economic and defence partnerships with authoritarian partners North Korea and China.
“Japan’s power in Asia remains steady, though it recorded negative results for all resource measures except military capability, where it recorded modest growth; while the 2025 ASEAN chair Malaysia enjoyed growing regional influence, but others, in particular Thailand, continue to be domestically preoccupied. The diplomacy of Indonesian President Prabowo Subianto was focused more globally than regionally.”
