ADB Forecasts 4.9% Economic Growth for Developing Asia in 2025

The Asian Development Bank (ADB) released its Asian Development Outlook 2025 on April 9, projecting a 4.9% economic growth rate for developing economies in Asia and the Pacific in 2025, with a slight moderation to 4.7% expected in 2026. The forecast reflects heightened trade uncertainty and the impact of newly imposed U.S. tariffs.

According to the report, inflation in the region is expected to ease, with the average inflation rate for developing Asia projected to fall to 2.3% in 2025 and 2.2% in 2026, driven by continued declines in global oil and commodity prices.

Albert Park, ADB's Chief Economist, noted that while the region faces growing trade barriers and elevated uncertainty, strong domestic demand and robust electronics exports will continue to support growth. However, he cautioned that the full implementation of new U.S. tariffs and escalating geopolitical tensions pose downside risks to the region's economic outlook.

In the foreword to the report, ADB President Masatsugu Asakawa described the Asia-Pacific region as being at a "critical turning point." He emphasized the importance of deepening regional cooperation to address common challenges such as supply chain vulnerabilities, energy security, and natural disasters. Strengthening cross-border cooperation mechanisms, he said, will provide a solid foundation for sustained growth and stability.

Founded in 1966 and headquartered in Manila, the Philippines, the Asian Development Bank is a multilateral development institution focused on fostering economic growth and cooperation in the Asia-Pacific region. The Asian Development Outlook is ADB's flagship annual publication, offering forward-looking analysis of the region's economic performance.