Asia's growth outlook improves but ADB warns of persistent headwinds
The Asian Development Bank forecast the region's economy will expand 4.9% in 2026, an improved outlook from earlier projections. The bank cautioned, however, that trade tensions and geopolitical uncertainty continue to pose persistent headwinds to growth.
The Asian Development Bank (ADB) said in its latest economic outlook that the region's economy is forecast to expand by 4.9% in 2026, an improvement on earlier projections driven by a recovery in domestic demand across several economies.
Despite the improved outlook, the bank warned that the region continues to face persistent headwinds. It cited ongoing global trade tensions, supply-chain uncertainty and geopolitical conflicts — particularly their effect on energy prices — as risks that could continue to weigh on regional economies.
ADB officials stressed that continued structural reform and deeper regional trade integration will be critical to building resilience against external shocks. The report also noted that export-dependent economies in the region remain particularly vulnerable to swings in global demand.
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