Manila (TDI): The Asian Development Bank (ADB) has predicated a decline in the economic growth of the developing countries in the Asia and the Pacific region by as much as 4.7%.
The forecast was made prior to the imposition of reciprocal tariffs by the United States and it remains unclear yet how these tariffs will impact the economic well being of this region.
According to the Asian Development Outlook April 2025, released on Wednesday, inflation has reduced from 2.6 percent last year to 2.3 percent in 2025. It will continue to decline in 2026, reaching to 2.2 percent.
The economic growth has declined from 5 percent in 2024 to 4.7 percent this year. In the next year, economic growth will continue to decline despite the increasing domestic and global demand for semiconductors.
Not taking into account recently announced US reciprocal tariffs, developing Asia and the Pacific was projected to grow 4.9% this year and 4.7% next year.
More in ADB’s flagship economic report: https://t.co/mUgVFebmHM#ADO2025 pic.twitter.com/7KZR7OcElK
— Asian Development Bank (@ADB_HQ) April 9, 202
In view of the Trump tariffs, the Asian Development Bank has noted that despite their resilience, the Asian economies might be affected due to the “faster and larger-than-expected changes in the US’ trade and economic policies.”
According to ADB Chief Economist Albert Park, “Rising tariffs, uncertainties about U.S. policy, and the possibility of escalating geopolitical tensions are significant challenges to the outlook. Asian economies should retain their commitment to open trade and investment, which have supported the region’s growth and resilience.”
China’s economic growth has been forecasted to decline to a 4.7 percent, compared to 5 percent last year. It will continue to decline in the next year, reaching to 4.3 percent.
The deterioration in the property markets of China might cause a further economic decline, affecting the growth of the entire region.
Read More: US to Impose 104% Tariffs on Chinese Imports
Nevertheless, the increasing domestic demand and flourishing tourism sector in South and Southeast Asia might offset the slowdown of People’s Republic of China, the ADB forecasted.
In Central Asia and the Caucasus, the economic growth has been projected to slowdown from 5.7 percent last year to 5.4 percent this year.
In the Pacific region, the economic growth would be supported by the tourism sector, but at a slower pace. The economic growth in the Pacific has been forecasted to reach to 3.9 percent this year and 3.6 percent in the next year, compared to 4.2 percent last year.
However, the Asian Development Bank has reported an increase in the economic growth in India, which has been projected to grow to 6.7 percent this year and 6.8 percent next year.
The economies of Southeast Asia have been forecasted to grow steadily at 4.7 percent this year and the next, according to the Asian Development Bank.
Javaria Khalid is a Web Contributor at The Diplomatic Insight Magazine. She specializes in covering geopolitical developments, international relations, diplomatic, and socio-economic developments in Europe and Pakistan.
