As Asia and the Pacific region are hammered by U.S. high tariff and trade uncertainty that clouded economic outlook, the Asian Development Bank (ADB) announced its adjustment on the region growth forecast for this year and next.
The institute speculated that geopolitics, supply chain disruptions, rising energy prices and uncertainty in China’s property market would weaken domestic demand, leading to a GDP downgrade on almost every country in the region.
Overall, the economic growth forecast for developing Asia this year and the next was lowered from 4.9% and 4.7% to 4.7% and 4.6%, respectively. As for the Pacific, the institute maintains the forecast for this year at 3.9%, but lower the next year’s forecast from 3.6% to 3.5%.
The institute’s Chief Economist, Albert Park, pointed out that although the region managed to handle several external challenges this year, the intensifying risks and global uncertainty have weakened the economy, resulting in this forecast.
Meanwhile, Southeast Asia seems to suffer the slowest growth rate among subregions as ADB lowered growth forecasts from 4.7% in 2025 and 2026 to 4.2% and 4.3%, respectively. As for Thailand, its growth forecast for this year and the next was cut from 2.8% and 2.9% to 1.8% and 1.6% respectively.
Park recommended countries in Southeast Asia to keep building their fundamentals and promote open trade as well as integration in the region to support investment, job market and economic growth.
