The Asian Development Bank (ADB) has lowered its economic growth forecast for developing countries in the Asia-Pacific region by 0.1 and 0.2 percentage points for the current and following years, respectively, due to the emergence of a new global trade environment based on tariffs and renewed trade agreements. According to AZERTAC, this was stated in the new report of the Asian Development Bank (ADB).

The report forecasts regional economic growth at 4.8% this year and 4.5% next year, compared to 4.9% and 4.7% projected in April, respectively. High tariffs imposed by the United States and growing uncertainty in trade are likely to have a negative impact on the region’s economic growth. Inflation is expected to decline to 1.7% this year due to lower food and energy prices. Next year, inflation is projected to rise to 2.1% as food prices normalize.

The economic growth forecast for the People’s Republic of China (PRC) remains unchanged, as government support is expected to mitigate the effects of higher tariffs and continued weakness in the real estate market. China’s economy is projected to grow by 4.7% this year and 4.3% next year.

The ADB projects India’s economy to grow by 6.5% in both 2025 and 2026. According to the April forecasts, growth was estimated at 6.7% for this year and 6.8% for next year.

The economic growth forecast for the Caucasus and Central Asia for this year was slightly raised to 5.5%. However, the forecast for next year was lowered by 0.1 percentage point to 4.9%, mainly due to reduced oil and gas production.