US trade tariffs to hurt developing Asia’s growth, ADB says

Published 23/07/2025, 06:34

Investing.com-- The Asian Development Bank (ADB) on Wednesday lowered its economic growth forecasts for developing Asia and the Pacific, warning that rising U.S. trade tariffs and weak global demand are weighing heavily on the region’s outlook.

In its latest Asian Development Outlook update, the bank cut its 2025 growth forecast for the region to 4.7%, down from 4.9% projected in April.

The 2026 forecast was also trimmed to 4.6% from 4.7%, amid concerns that escalating trade tensions, geopolitical conflicts, and a potential downturn in China’s property sector could further drag on performance, ADB analysts said.

“Asia and the Pacific has weathered an increasingly challenging external environment this year. But the economic outlook has weakened amid intensifying risks and global uncertainty,” said ADB Chief Economist Albert Park in a note.

Growth in China is expected to hold steady at 4.7% this year, supported by policy stimulus aimed at bolstering consumption and industrial activity, while India’s forecast was revised down to 6.5% in 2025 and 6.7% in 2026, according to ADB.

Southeast Asia is expected to be hit hardest, with growth cut to 4.2% this year. In contrast, Central Asia’s forecast was raised slightly on expectations of stronger oil production, ADB said.

Regional inflation is expected to ease to 2.0% in 2025, as food and energy pressures soften, analysts added.

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