The Asian Development Bank raised its 2026 economic growth forecast for developing Asia and the Pacific to 5.0 percent from a previous projection of 4.9 percent, according to its Asian Development Outlook released Wednesday in Manila. The lender kept its 2027 regional expansion forecast at 5.1 percent while revising price projections lower across the area.
Steady expansion in China
The institution maintained its growth forecast for China at 4.6 percent for 2026 and 4.5 percent for 2027, following actual growth of 5.0 percent in 2025. China consumer prices were flat in 2025.
The bank cut its 2026 inflation forecast for China to 0.9 percent, down from the 1.2 percent projection it published in July. It projects China inflation at 0.9 percent in 2027. Price pressures remain subdued.
Revisions across regional economies
For India, the bank raised its 2026 growth projection to 7.0 percent from an earlier estimate of 6.6 percent. India growth accelerated.
Southeast Asia also saw an upgrade, with the lender lifting its 2026 growth forecast for the sub-region to 4.7 percent from 4.6 percent, covering economies including Vietnam, Malaysia and the Philippines. In East Asia, previous sub-region growth projections published in April stood at 4.4 percent for 2026 and 4.1 percent for 2027.
Across developing Asia as a whole, the ADB marked down its 2026 regional inflation projection to 4.2 percent from 4.3 percent. For 2027, the lender adjusted regional inflation to 3.5 percent from an earlier forecast of 3.4 percent, citing broader geopolitical contexts spanning Russia, Ukraine, the Middle East, the Caucasus, Central and West Asia, and the Pacific.
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Source: Asian Development Bank | Data: FRED — St. Louis Fed
