India’s Growth Boosts Asian Outlook, Says ADB

The Asian Development Bank (ADB) has lifted its growth forecast for developing Asia and the Pacific, crediting stronger-than-expected expansion in India and rising demand from high-tech economies. The region is now projected to grow 5.1% in 2025, up from the earlier 4.8% estimate, with the 2026 forecast also revised slightly higher to 4.6%. ADB said growth will be supported by stronger exports in AI and electronics, alongside reduced trade uncertainty following recent U.S. agreements.

South Asia’s outlook has improved significantly, with expected growth increasing to 6.5% this year, driven by India’s robust 8.2% performance in the September quarter. Southeast Asia is also set to expand faster at 4.5% in 2025, though risks persist due to climate disruptions, political instability, and global economic uncertainty. Recent floods across Indonesia, Thailand, and Malaysia displaced millions, while renewed fighting between Thailand and Cambodia highlights geopolitical threats.

China’s forecast saw a marginal upward revision to 4.8% for 2025, still missing Beijing’s 5% target. ADB noted that weakness in the property sector continues to drag down investment and overall activity. Inflation across the region is expected to ease slightly to 1.6% in 2025 before edging up to 2.1% the following year. Despite improved projections, ADB warned of risks from tariff escalation, trade policy uncertainty, and financial market volatility.

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