ADB upgrades growth forecast for developing Asia

TOKYO, Dec 10 (KUNA) -- The Asian Development Bank (ADB) raised on Wednesday its growth forecasts for economies in developing Asia and the Pacific for this year and the next, amid stronger exports and reduced trade uncertainty following the end of trade agreements with the US.
In an update of its Asian Development Outlook, the Manila-based lender expects gross domestic product (GDP) in the region to expand 5.1 percent this year and 4.6 percent next year, both up from the September forecast of 4.8 percent and 4.5 percent, respectively.
The ADB said resilient exports-particularly of semiconductors and other technology products- moderating inflation, and stable financial conditions have strengthened the region's growth outlook.
Developing Asia covers 46 economies in Central Asia, East Asia, South Asia, Southeast Asia and the Pacific, but excludes industrialized countries of Japan, Australia and New Zealand.
"Asia and the Pacific's solid economic fundamentals are underpinning robust export performance and steady growth, despite a global trade environment clouded by historic levels of uncertainty over the past year," ADB chief economist Albert Park said in a statement.
"Trade agreements have partly eased that uncertainty, but external and other challenges could still weigh on the outlook. Governments in the region should continue to foster open trade and investment to sustain resilience and growth," said Park.
The ADB revised up growth projection for China, the region's largest economy, to 4.8 percent this year from 4.7 percent estimate in September as resilient exports and continued fiscal stimulus, while maintained the 2026 outlook at 4.3 percent.
India's 2025 growth prospect was raised to 7.2 percent from 6.5 percent, reflecting stronger third-quarter expansion as tax cuts supported consumption, the bank kept its growth outlook next year for India unchanged at 6.5 percent.
The ADB upgraded the GDP growth forecast for Southeast Asia to 4.5 percent in 2025, compared with earlier estimate of 4.3 percent, thanks to a strong third quarter in Indonesia, Malaysia, Singapore, and Vietnam.
Growth in the subregion is now projected at 4.4 percent for 2026, up from September's forecast of 4.3 percent.
The ADB also pointed out challenges ahead, saying, "Risks to the regional outlook include renewed trade tensions and financial market volatility, as well as geopolitical pressures and a worse-than-expected deterioration in China's property market." The ADB is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific, established in 1966, it has now owned by 68 members, mostly from the region, as well as the US, the UK and Germany. (end) Mk.sar