📈 ADB Outlook: Developing Asia Growth to Moderate to 5.0% in 2026 Amid Resilient Demand

Economic growth across developing Asia and the Pacific is projected to moderate to 5.0% in 2026 before picking up to 5.1% in 2027, according to the Asian Development Bank's (ADB) September 2026 report. • Regional Figures & Inflation: • Regional GDP growth for 2026 revised up slightly by 0.1 percentage points📈 ADB Forecast: Developing Asia Growth to Slow to 5% in 2026 amid Resilient South Asian Outlook The Asian Development Bank (ADB) projects economic growth in developing Asia and the Pacific to moderate to 5.0% in 2026 (up 0.1 percentage points from July's outlook) and edge up to 5.1% in 2027, following 5.5% expansion in 2025. • Regional Outlook & Key Drivers: • Regional inflation is projected at 4.2% for 2026 and 3.5% for 2027. • Growth is anchored by strong investment, government stimulus, and robust technology exports driven by the global AI investment cycle. • Subregional Performance: • South Asia: Growth forecast upgraded to 6.4% for 2026 (up from 6.0%), fueled by strong public investment and export growth in India. 2027 projection revised down to 6.5% due to trade, energy, and weather shocks affecting neighboring economies. • Southeast Asia: Outlook raised to 4.7% (2026) and 4.9% (2027) on strong H1 performance. • Pacific: Saw the largest cuts, down to 3.0% (2026) and 2.9% (2027) due to energy disruptions and El Niño impacts on agriculture and mining. • Key Downside Risks: • A strengthening El Niño persisting into Q1 2027 threatens agricultural production, food security, and hydropower capacity. • Geopolitical conflicts (Middle East, Russia-Ukraine) keeping global energy and commodity prices volatile. • Tightening financial conditions, potential AI equity corrections, and trade policy uncertainty.