Growth forecasts for the developing Asia and Pacific regions have been revised from earlier projections, according to reports published separately by the Asian Development Bank (ADB) and the International Monetary Fund (IMF), following similar trends emerging globally.

The recently published ADB July Outlook showed China's GDP expanded by 5.4 percent and 5.3 percent in Q1 and H1 of this year respectively, owing to "policy-led boosts to consumption, robust industrial output and strong export performance."

Other areas in Asia have also witnessed similar growth during Q1, with India's GDP growing by 7.4 percent, boosted by higher net exports and public sector investment.

Significant downward revisions have been made in the Southeast Asian region, however, to 4.2 percent and 4.3 percent for 2025 and 2026 respectively. 

The 2025 growth forecast for East Asia has been revised to 4.3 percent and for South Asia to 5.9 percent amid weaker trade prospects due to the US tariff hikes, while the 2026 growth forecasts remain at 4.0 percent and 6.2 percent respectively. 

Growth for the Pacific is still forecast at 3.9 percent for 2025 but revised down to 3.5 percent for 2026, reflecting expected softening in visitor arrivals.

The IMF's External Sector Report for July, which provides an assessment of imbalances for 30 of the world's largest economies, cited China's economic development as "encouraging".

Meanwhile, the report also warned that the Trump administration's imposition of import tariffs on almost all trading partners may have a further significant impact on global macroeconomics.

However, it noted that higher deficit barriers in trade deficit countries, such as the US, only have a minor impact on global imbalances, due to tariffs having a negative supply shock on the country imposing the tariffs.

(Cover via VCG)