Developing Asia growth upgraded to 5.1% for 2025: ADB

ADB upgraded its growth forecasts for the region for 2025 and 2026, citing stronger-than-expected exports and reduced trade uncertainty following the conclusion of several trade agreements with the US. India’s better-than-expected performance played a key role in the region’s upgrade, ADB said in a press release.

“Asia and the Pacific’s solid economic fundamentals are underpinning robust export performance and steady growth, despite a global trade environment clouded by historic levels of uncertainty over the past year,” said Albert Park, chief economist at ADB. “Trade agreements have partly eased that uncertainty, but external and other challenges could still weigh on the outlook. Governments in the region should continue to foster open trade and investment to sustain resilience and growth.”

China’s 2025 growth forecast has been revised up to 4.8 per cent from 4.7 per cent, supported by resilient exports and ongoing fiscal stimulus, while its 2026 forecast remains at 4.3 per cent. India’s growth outlook for 2025 has been raised to 7.2 per cent, reflecting stronger third-quarter activity aided by tax cuts that boosted consumption.

The Caucasus and Central Asia sub-region is now expected to grow by 5.8 per cent this year, up from 5.5 per cent, driven by robust domestic demand, rising remittances, and strong public investment. Southeast Asia’s 2025 growth forecast has also been upgraded to 4.5 per cent following solid third-quarter performances in Indonesia, Malaysia, Singapore, and Vietnam. Projections for the Pacific remain unchanged at 4.1 per cent this year and 3.4 per cent next year.

Inflation across developing Asia and the Pacific is expected to ease marginally to 1.6 per cent this year, slightly below the September forecast of 1.7 per cent. The regional inflation outlook for 2026 remains unchanged at 2.1 per cent, added the release.

ALCHEMPro News Desk (SG)