ISLAMABAD
\nThe 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.
\nResilient exports, particularly of semiconductors and other technology products, moderating inflation, and stable financial conditions have strengthened the region\u2019s growth outlook. The region\u2019s 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%.
\n\u201cAsia and the Pacific\u2019s 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,\u201d said ADB Chief Economist Albert Park. \u201cTrade 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.\u201d
\nRisks 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\u2019s Republic of China\u2019s (PRC) property market.
\nThe PRC\u2019s 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\u2019s 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%.
\nThe 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\u2019s 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.
\nThe forecasts for the Pacific are unchanged for this year and next, at 4.1% and 3.4%, respectively.
\nInflation 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\u2019s inflation forecast for next year remains at 2.1%. <\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD 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 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-519333","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n