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ISLAMABAD, Dec 10 (APP):The Asian Development Bank (ADB) has raised its growth forecasts for economies in developing Asia and the Pacific for this year and next, amid stronger-than-expected exports and reduced trade uncertainty following the conclusion of several trade agreements with the United States.
Resilient exports, particularly of semiconductors and other technology products, moderating inflation, and stable financial conditions have strengthened the region’s growth outlook. The region’s economy is now projected to expand by 5.1% this year, compared with a 4.8% forecast in September, according to Asian Development Outlook (ADO) December 2025, released on Wednesday.
The outlook for next year has also been upgraded by 0.1 percentage points to 4.6%.
“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 ADB Chief Economist Albert Park. “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.”
Risks to the regional outlook include renewed trade tensions and financial market volatility, as well as geopolitical pressures and a worse-than-expected deterioration in the People’s Republic of China’s (PRC) property market.
The PRC’s growth forecast for this year has been raised to 4.8% from 4.7%, amid resilient exports and continued fiscal stimulus. The outlook for 2026 remains unchanged at 4.3%. India’s 2025 growth projection is raised by 0.7 percentage points to 7.2%, reflecting stronger third-quarter expansion as tax cuts supported consumption. The 2026 forecast stays unchanged at 6.5%.
The outlook for the Caucasus and Central Asia subregion has been revised up to 5.8% this year from a previous forecast of 5.5%, buoyed by strong public investment, rising remittances, and robust domestic demand.
Southeast Asia’s growth projection for this year has been upgraded by 0.2 percentage points to 4.5%, reflecting a strong third quarter in Indonesia, Malaysia, Singapore, and Viet Nam. The forecasts for the Pacific are unchanged for this year and next, at 4.1% and 3.4%, respectively.
Inflation in developing Asia and the Pacific is expected to ease further to 1.6% this year, compared with a 1.7% projection in September. This mainly reflects lower-than-anticipated food inflation in India. The region’s inflation forecast for next year remains at 2.1%.