Page 10 - Policy Economic Report - April 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Figure 5: ADB GDP Growth forecast

Source- ADB

The report notes that while economies in the region are resilient, faster, and larger-than-expected
changes in US trade and economic policies pose risks to the outlook. Along with higher US tariffs, increased
policy uncertainty and retaliatory measures could slow trade, investment, and growth. Further
deterioration in the property market of the People’s Republic of China (PRC), the region’s largest
economy, could also drag on growth. ADB projects a 4.7% expansion for the PRC this year, and 4.3% next
year, compared with 5.0% last year.

Stronger growth in South Asia and Southeast Asia, driven by domestic demand, and a continued recovery
in tourism elsewhere in the region will partly offset the slowdown in the PRC. India—South Asia’s largest
economy is projected to grow by 6.7% this year and 6.8% next year, according to ADB projections.

Weak external demand is expected to weigh on economic activity in Caucasus and Central Asia, with
growth projected to slow from 5.7% last year to 5.4% this year and 5.0% next year. For the Pacific, tourism
will continue to support growth but at a slower pace, which is forecast at 3.9% this year and 3.6% next
year, compared to 4.2% last year.

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