Asian Development Outlook- April 2025

Weak consumption in the People’s Republic of China will partly offset robust domestic demand in South Asia. Disinflation is expected to continue, driven by lower food and energy prices, along with the lagged effects of previous monetary policy tightening. The region’s high-income technology exporters remain a bright spot, benefiting from strong global demand for electronics. However, rising trade uncertainty and escalating tariffs have created headwinds, weighing on financial markets and investor confidence. The region must navigate these challenges to sustain its economic momentum.