ADB lowers growth outlook for developing Asia in 2024-2025

Developing Asia is expected to grow more slowly than previously forecast this year and next, according to the Asian Development Bank (ADB). Growth for the region is now projected at 4.9% in 2024 and 4.8% in 2025, slightly below the earlier estimates of 5% and 4.9%. The revision reflects weaker-than-expected economic performance in some economies during the third quarter and a softer outlook for consumer spending.

China’s growth forecast remains unchanged at 4.8% for 2024 and 4.5% for 2025, but India’s projections have been revised downward. The ADB now expects India to grow by 6.5% in 2024, down from 7% previously, and 7% in 2025, compared to the earlier forecast of 7.2%.

The bank warned that potential changes to US trade, fiscal, and immigration policies under President-elect Donald Trump could hurt growth in developing Asia and push inflation higher, though most impacts are expected beyond the 2024-2025 period.