New Delhi, April 10: Despite a slowdown in economic growth across the Asia-Pacific region due to geopolitical challenges, India is poised to surpass both the region and China. This insight comes from a report released by the Asian Development Bank (ADB) on Friday.
According to ADB’s analysis, the economic growth rate for developing Asia and the Pacific is projected to decline from 5.4% last year to 5.1% in 2026 and 2027, primarily due to geopolitical tensions and uncertainties in global trade.
In contrast, India’s economic growth is expected to remain robust, with a forecast of 6.9% in 2026, potentially rising to 7.3% in 2027 driven by strong domestic consumption.
The report indicates that while most economies in the Asia-Pacific region are likely to experience slower growth this year and in 2027, India’s economic position remains relatively strong.
ADB also noted that the region is still in a better position due to strong domestic demand, a stable labor market, and increasing infrastructure spending, although risks remain on the downside.
The report states, “Economic growth in the People’s Republic of China (PRC) is expected to decline to 4.6% this year and 4.5% next year, down from 5% last year. The main reasons for this slowdown are weaknesses in the property sector and sluggish exports.”
ADB’s Chief Economist, Albert Park, mentioned that prolonged conflicts in the Middle East could drive up energy and food prices, further deteriorating financial conditions, posing the greatest threat to the region’s future.
The report also highlights that ongoing fluctuations in global trade policies could negatively impact regional growth.
However, strong private consumption and increasing demand for products related to artificial intelligence (AI) are expected to provide some support to the region’s economies.
Additionally, while oil prices may remain high, there could be stability in the future if geopolitical tensions ease.
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