The Asian Development Bank has downgraded its economic growth projections for 2025–26 in response to rising U.S. tariffs, trade disruptions, and regional economic headwinds, especially in Southeast Asia.
1. Updated Growth Projections
ADB now expects growth of 4.7% in 2025 and 4.6% in 2026 for developing Asia, down from its earlier 4.9% and 4.7%, with Southeast Asia expected to grow at 4.2% and 4.3% respectively.
2. Headwinds Driving the Downgrade
Key risks include U.S. trade policy uncertainty, supply chain disruptions, Chinese property sector stress, and rising energy costs, all contributing to a softer investment and export outlook.
3. Policy Recommendations
ADB calls for stronger integration of ASEAN economies, agile trade frameworks, and supportive fiscal instrumentation to buffer countries against external shocks.
Editor’s Note
Slower growth is no surprise. The bigger risk lies in complacency—ADB’s warnings should push policymakers to preempt trade-driven volatility.
Tags: adb‑economic‑outlook, asean‑growth‑forecast, tariff‑pressures‑asia, trade‑policy‑risk