Manila, July 23 (EFE) — The Asian Development Bank (ADB) has revised downward its growth projections for developing economies in Asia and the Pacific to 4.7% in 2025, down from the previously forecast 4.9% in April, citing the impact of tariffs imposed by former U.S. President Donald Trump.
“Downside risks have intensified, with the most significant being the rise in U.S. tariffs and trade uncertainty, which could worsen the region’s growth outlook,” the Manila-based institution stated in its latest forecast.
In addition to lowering the regional growth forecast by 0.2 percentage points for this year, the ADB also projected that developing countries in the region will grow by 4.6% in 2026, down from the 4.7% estimate in April.
This multilateral institution, where Japan and the U.S. are the largest shareholders, maintained its growth outlook for China at 4.7% in 2025 and 4.3% next year.
However, other major economies in the region saw their forecasts revised downward.
Malaysia, for example, is now expected to grow by 4.3% in 2025, down from the previous 4.9%, due to “concerns over U.S. tariffs that have dampened export and investment prospects.” India’s growth forecast was also lowered to 6.5% for this year from the earlier 6.7%.
In light of global uncertainty, countries in the region should “continue strengthening fundamentals and promoting open trade and regional integration to support investment, employment, and growth,” said ADB Chief Economist Albert Park.
Southeast Asia, which counts the U.S. as one of its main export markets and China as its largest trading partner, has sought to negotiate with Washington while opening new trade routes with the European Union and Latin America, among others.
Trump announced on Tuesday a deal with the Philippines under which the country’s exports to the U.S. will face tariffs of 19%, one percentage point lower than initially announced.
Washington also reached an agreement with Japan to impose tariffs of 15%, while Indonesia recently reduced U.S. tariffs on its exports from 32% to 19%, and Vietnam did the same, lowering tariffs from 46% to 20% following agreements with the U.S.