Overview
- Developing Asia’s 2025 growth is now put at 5.1%, with 2026 nudged to 4.6%, helped by resilient tech exports and reduced trade uncertainty.
- The bank kept India’s FY27 projection at 6.5% and expects some cooling later in the fiscal year as capex eases and higher U.S. tariffs weigh on select exports.
- Inflation projections were trimmed, with developing Asia seen at 1.6% in 2025 and India at 2.6% for FY26 on lower food prices and policy effects.
- South Asia’s 2025 outlook was raised to 6.5%, and Pakistan’s forecasts were upgraded after stronger late‑FY2025 data and a smaller‑than‑feared flood impact.
- ADB cautioned that tariff flare‑ups, financial‑market volatility, climate shocks and China’s property downturn remain key downside risks.