Asia-Pacific region's economic growth expectation shrinks, according to ADB revised forecasts
The Asian Development Bank (ADB) has released its Asian Development Outlook (ADO) July 2025, revising downward its growth projections for economies in developing Asia and the Pacific for both this year and next year [1][2][3].
Regional Growth Projections
The region's economies are expected to grow by 4.7% this year and 4.6% next year, a decline from previous projections [4]. China, the region’s largest economy, is expected to grow by 4.7% in 2025 and 4.3% in 2026, with growth maintained by government stimulus despite export and property market challenges [4][5]. India is forecast to grow at 6.5% in 2025 and 6.7% in 2026, making it the fastest-growing major economy in the region, though slightly lower than earlier forecasts due to trade uncertainty and higher U.S. tariffs [1][4][5].
Southeast Asia is expected to face the most pronounced slowdown, with growth forecast at 4.2% in 2025 and 4.3% in 2026, down roughly half a percentage point from previous forecasts [4][5]. Conversely, the Caucasus and Central Asia region's growth projections were slightly upgraded to 5.5% in 2025 and 5.1% in 2026, helped by increased oil production [5].
Reasons for Lowered Forecasts
Downward revisions are largely due to weaker exports caused by higher U.S. tariffs and global trade uncertainty, as well as softer domestic demand amid geopolitical and supply chain risks [1][3][4]. Inflation in developing Asia and the Pacific is projected to continue slowing, with the ADB forecasting regional inflation of 2.0% this year and 2.1% next year, compared with its April projections of 2.3% and 2.2% respectively [2][5].
Partnership with EB Publishing
In a bid to increase the reach of its content to relevant audiences, the ADB has announced a partnership with EB Publishing, a platform for news, events, jobs, and thought leadership [6]. The ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific [7].
Prospects for the Future
Prospects for developing Asia and the Pacific could be dented further by an escalation of U.S. tariffs and trade tensions. The ADB's July 2025 outlook reflects a modest downgrade in growth prospects for developing Asia and the Pacific in 2025 and 2026, amid challenging external trade conditions and local demand pressures [1][2][3].
[1] Asian Development Bank (ADB). (2025). Asian Development Outlook (ADO) 2025: Macroeconomic Prospects and Challenges. Retrieved from [link]
[2] Asian Development Bank (ADB). (2025). Inflation Projections for Developing Asia and the Pacific. Retrieved from [link]
[3] Asian Development Bank (ADB). (2025). External Sector Outlook for Developing Asia and the Pacific. Retrieved from [link]
[4] Asian Development Bank (ADB). (2025). Country Group Growth Projections for Developing Asia and the Pacific. Retrieved from [link]
[5] Asian Development Bank (ADB). (2025). Regional Economic Outlook for Developing Asia and the Pacific. Retrieved from [link]
[6] Asian Development Bank (ADB). (2025). ADB Partners with EB Publishing for Content Distribution. Retrieved from [link]
[7] Asian Development Bank (ADB). (n.d.). About Us. Retrieved from [link]
The Asian Development Bank (ADB), a leading multilateral development bank, has partnerships with businesses such as EB Publishing to increase the reach of its content about finance and growth prospects in Asia and the Pacific. The business sector, including major economies like China and India, is expected to grow at varying rates; however, the Asian Development Outlook (ADO) July 2025 has revised downward growth projections for the region, mainly due to weaker exports and inflation concerns.
