The Asian Development Bank has slightly raised its growth expectations for developing economies in the Asia Pacific region

On September 23rd, the Asian Development Bank released the "Asia Development Outlook 2026 (September Edition)". The report points out that although the economic growth rate of developing economies in the Asia Pacific region has slowed down compared to last year, the region's economy still shows resilience in the increasingly severe situation.

The report points out that due to strong domestic demand, government stimulus measures, and sustained strength in technology related industries supporting economic activity, the growth rate of developing economies in Asia and the Pacific is expected to be 5.0% in 2026, which is lower than the 5.5% in 2025 but slightly higher than the forecast in July. The forecast for 2027 remains unchanged at 5.1%.

The report states that a very strong El Ni ñ o phenomenon is expected to occur this year, which will further drag down economic growth and exacerbate price pressures. The inflation rate forecast for the region in 2026 has been lowered to 4.2%, while the inflation rate for 2027 has been slightly raised to 3.5%.

The Asian Development Bank is a multilateral development bank focused on the development of the Asia Pacific region, established in 1966 and headquartered in Manila, the capital of the Philippines. The Asian Development Outlook is the annual flagship economic report of the Asian Development Bank, which makes predictions on the economic development of the Asia Pacific region.