Archive · 23 Jul 2025
Asian Economic Growth Downgraded Amid Tariff Concerns
Imagine a group of countries in Asia, like China and India, that are working together.
Experts are saying these countries might not grow as fast as they thought because of tariffs.
Tariffs are like extra fees on things countries buy and sell from each other.
The US is thinking about adding these fees, and that could make things more expensive.
Because of this, experts predict that the growth of these countries will slow down.
If the US puts high tariffs on China, this could make the economy do even worse.
So, experts are a little worried about how fast these countries will grow in the next few years.
ADB and Amro lowered growth projections for Asian economies due to tariff impacts.
Developing Asia's GDP growth is projected at 4.7% this year, down from a prior 4.9% forecast.
Southeast Asia is expected to be hit hardest by trade conditions and uncertainty.
US tariffs and China trade tensions could reduce regional growth by 0.5 to 1.4 percentage points.
China's property market and US trade policy uncertainty pose risks to regional growth.
- Who
- The Asian Development Bank (ADB) and Amro lowered the forecasts.
- What
- Growth forecasts for Asian economies are being lowered.
- When
- Forecasts were recently updated.
- Where
- Asia, especially Southeast Asia.
- Why
- Due to the impact of US trade policy and tariffs.
Impact of US Tariffs
Trade Deals
Trade Barriers
Impact of US Tariffs
Trade deals may not offset the impact of high trade barriers, economic fragmentation, and policy shocks.
Trade Deals
Not applicable
- Developing Asia GDP (2024)
- 4.7%
- Developing Asia GDP (2025)
- 4.6%
- Vietnam GDP (2025)
- 6.3%
- Vietnam GDP (2026)
- 6.0%
- China GDP (2024)
- 4.7%
- China GDP (2026)
- 4.3%
- India GDP (2025)
- 6.5%
- India GDP (2026)
- 6.7%
- South Korea GDP (2024)
- 0.8%
- South Korea GDP (2025)
- 1.6%