Developing Asia Faces Slower Growth, Lower Inflation Through 2026: ADB

The Asian Development Bank (ADB) said forecasts for the region, finalized before the United States (US) announced new tariffs on 2 April, project growth in developing Asia and the Pacific to moderate this year and next.

A slowdown in the People’s Republic of China (PRC), driven by persistent weakness in the property sector and higher US tariffs, will be partially offset by stronger growth in South Asia.

“The region will be challenged by rising trade barriers and significant trade uncertainty, but solid domestic demand and electronics exports will support growth,” the ADB said in its latest outlook report.

Regional growth is forecast at 4.9 percent in 2025 and 4.7 percent in 2026. Inflation is expected to ease to 2.3 percent in 2025 and 2.2 percent in 2026 as global commodity prices decline further, allowing many central banks in the region to loosen monetary policy.