ADB raises 2026 growth forecast for developing Asia-Pacific economies

(ECNS) -- The Asian Development Bank (ADB) has raised its 2026 growth forecast for developing economies in Asia and the Pacific slightly to 5 percent, according to its Asian Development Outlook September 2026 released Wednesday. 

The report said the region's developing economies remain resilient despite slower growth than last year, supported by strong domestic demand, government stimulus measures and continued strength in technology industries.

Growth is projected at 5% in 2026, down from 5.5% in 2025 but slightly higher than the ADB's July forecast. The growth forecast for 2027 remains at 5.1%.

The ADB lowered its inflation forecast for developing economies in Asia and the Pacific to 4.2% for 2026 and 3.5% for 2027.

Risks include high global energy prices, conflicts in the Middle East and Ukraine, and a strong El Niño affecting agriculture. The report also warned that trade policy uncertainty and valuation adjustments in AI-related stocks could weigh on activity. 

Established in 1966 and headquartered in Manila, the Philippines, the ADB is a multilateral development bank with 69 members. Its flagship Asian Development Outlook provides economic forecasts for Asia and the Pacific. 

(By Helen Mo & intern Liu Shuangjing)