Asia-Pacific Economy Faces Decreased Growth Expectations According to ADB Forecast
Asian Development Bank Lowers Growth Forecasts for Developing Asia-Pacific
The Asian Development Bank (ADB) has revised down its growth forecasts for economies in developing Asia and the Pacific due to the impact of higher US tariffs and global trade uncertainty. According to the ADB's July 2025 Asian Development Outlook, regional growth is expected to be 4.7% in 2025, a 0.2 percentage point decline from the earlier estimate, and 4.6% in 2026, a further 0.1 percentage point reduction[1][2][3][5].
The weaker growth outlook is primarily due to slower export demand caused by rising US tariffs, trade tensions, geopolitical risks, and supply chain disruptions. Additionally, softer domestic demand and concerns over China's property market contribute to the slower growth projections. Economies in Southeast Asia are expected to experience the most pronounced slowdown, with growth forecasted at around 4.2% in 2025, down from earlier forecasts[2][3][5].
ADB Chief Economist Albert Park emphasised that while the region has shown resilience in the face of external shocks, the escalating tariffs and global trade uncertainty are weighing on export-dependent economies. He urged countries to strengthen economic fundamentals, maintain open trade regimes, and deepen regional integration to support investment and employment[1][2][3].
Risks that could further worsen the outlook include an escalation of US tariffs or broader trade disputes, geopolitical tensions disrupting global supply chains, rising energy prices, and further deterioration in the Chinese property market[3][5].
However, the ADB also noted some positives such as easing inflation due to lower fuel prices, ongoing domestic spending in some large economies like China and India, and steady growth prospects in Central Asia supported by higher oil production[1].
India, the region's second-largest economy, is forecast to grow by 6.5% this year and 6.7% next year. The growth projections for the People's Republic of China (PRC), the region's largest economy, are maintained at 4.7% this year and 4.3% next year[1].
The press release is related to topics like Policy & Finance, economy, investment, supply chain, and trade[4]. The regions covered in this press release include Asia Pacific, China, Global, Southeast Asia, and the United States[6].
[1] Asian Development Bank (ADB). (2025). Asian Development Outlook (ADO) July 2025. Retrieved from ADB website
[2] Asian Development Bank (ADB). (2025). ADB lowers 2025 growth forecast for developing Asia and the Pacific. Retrieved from ADB website
[3] Asian Development Bank (ADB). (2025). ADB: Escalating tariffs and global trade uncertainty weighing on export-dependent economies. Retrieved from ADB website
[4] Asian Development Bank (ADB). (2025). Press Release: ADB lowers growth forecasts for developing Asia and the Pacific. Retrieved from ADB website
[5] Asian Development Bank (ADB). (2025). ADB: Risks to growth in developing Asia and the Pacific. Retrieved from ADB website
[6] Asian Development Bank (ADB). (2025). Regions. Retrieved from ADB website
- The Asian Development Bank (ADB) has lowered its growth forecasts for economies in developing Asia and the Pacific, citing the impact of higher US tariffs and global trade uncertainty on business and finance sectors.
- To support investment and employment amidst escalating tariffs and global trade uncertainty, ADB Chief Economist Albert Park urged countries to strengthen their economic fundamentals, maintain open trade regimes, and deepen regional integration.
