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, citing stronger-than-expected exports and reduced trade uncertainty following the conclusion of multiple trade agreements with the United States.
Resilient exports—especially of semiconductors and other technology products—along with moderating inflation and stable financial conditions have strengthened the region’s economic outlook. According to the Asian Development Outlook (ADO) December 2025, released on Wednesday, the region is now projected to grow by 5.1% this year, compared with a 4.8% forecast issued in September.
The growth 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, financial market volatility, geopolitical pressures, and the possibility of a sharper-than-expected downturn 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%, driven by resilient exports and ongoing fiscal stimulus. Its outlook for 2026 remains unchanged at 4.3%. India’s 2025 growth projection has been revised upward by 0.7 percentage points to 7.2%, reflecting stronger third-quarter expansion supported by tax cuts. The forecast for 2026 remains at 6.5%.
The growth outlook for the Caucasus and Central Asia subregion has also been revised upward to 5.8% this year, compared with the earlier estimate of 5.5%, supported by strong public investment, rising remittances, and robust domestic demand.
Southeast Asia’s growth projection for this year has been lifted by 0.2 percentage points to 4.5%, reflecting strong third-quarter performances in Indonesia, Malaysia, Singapore, and Viet Nam. Forecasts for the Pacific remain 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 the 1.7% estimate in September. This improvement mainly reflects lower-than-anticipated food inflation in India. The region’s inflation outlook for next year remains unchanged at 2.1%.
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