FX.co ★ ADB Forecasts Developing Asia to Grow 4.9% in 2025

The Asian Development Bank (ADB) has released its latest projections for GDP growth across developing Asian countries, anticipating a marginal decline to 4.9% in 2025—the slowest growth rate since 2022—and a further deceleration to 4.7% in 2026. This marks a decrease from an expected 5.0% in 2024, as outlined in the bank’s Asian Development Outlook report. These predictions were established prior to the United States announcing significant new import tariffs last week, as noted by the ADB on Wednesday. Should these U.S. tariffs be fully implemented, they could potentially reduce developing Asia's growth by approximately one-third of a percentage point this year and nearly a full percentage point by 2026. "The critical uncertainty is the full execution of the U.S. tariffs, which could lead to a downward adjustment in our baseline growth projections," stated Albert Park, ADB's chief economist. The already adjusted forecast takes into consideration a predicted slowdown in China's economy, which is expected to grow by 4.7% this year, a drop from 5.0% in 2024, and decreasing further to 4.3% in 2026.