ADB raises 2026 developing Asia growth forecast to 5%

Mettis Global reported that the Asian Development Bank now expects economies in developing Asia to expand 5% in 2026, up 0.1 percentage points versus its July estimate. The lender's latest Asian Development Outlook sees growth slowing from 5.5% in 2025, with a slight pickup to 5.1% in 2027. The upgrade reflects activity in parts of the region that proved stronger than expected.

The bank trimmed its 2026 inflation projection to 4.2% from 4.3%, but lifted its 2027 estimate slightly to 3.5%. ADB President Masato Kanda said the region has stayed resilient while risks are rising. He pointed to a strengthening El Niño, which could curb harvests and hydropower, pushing food and energy prices higher.

The South Asia projection for 2026 rose to 6.4% from 6%, helped by public investment and India's export momentum. The 2027 South Asia figure fell 0.2 points to 6.5%, with Afghanistan, Bangladesh, India and Nepal among the weaker estimates. Pacific economies recorded the steepest cuts, with both years trimmed by 0.3 percentage points.