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Developing Asia: growth expected to slow to 5.0% in 2026

The Asian Development Bank forecasts 5.0% growth in 2026 for developing Asia and the Pacific, down from 5.5% in 2025, with inflation rising to 4.2%.

In its outlook published on 23 September 2026, the Asian Development Bank (ADB) expects growth of 5.0% in 2026 for the developing economies of Asia and the Pacific, then 5.1% in 2027. That is below the 5.5% recorded in 2025, but 0.1 percentage point above its July projection.

Strong investment, government stimulus and technology exports driven by the artificial intelligence investment cycle are supporting activity. ADB cites two main risks: escalating conflict, which could keep energy prices elevated and volatile, and a very strong El Niño, forecast to persist through the first quarter of 2027. South Asia remains the fastest-growing subregion (6.4%), ahead of Southeast Asia (4.7%).

2026 growth forecasts by subregion
South Asia
6.4%
Developing Asia and Pacific
5.0%
Southeast Asia
4.7%
Caucasus and Central Asia
3.7%
Pacific
3.0%

Source: Asian Development Bank — Asian Development Outlook, September 2026

Key figures

IndicatorValueReference period
Growth in developing Asia and the Pacific5.0%2026 forecast
Growth recorded5.5%2025
Expected growth5.1%2027 forecast
Regional inflation4.2%2026 forecast (3% in 2025)
South Asia6.4%2026 growth forecast

Outlook, limits and risks

These are forecasts, revised several times a year. ADB lists as risks further geopolitical escalation, a worse-than-expected El Niño, tighter financial conditions, a correction in AI-related valuations and renewed trade policy uncertainty.

Source

Original summary written from the sources cited. It is neither investment advice nor an offer. Figures and forecasts belong to their authors and may be revised.

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