- Asian Development Bank (ADB) reduced India’s FY25 GDP growth forecast from earlier estimate of 7% to 6.5%.
- ADB reduced the growth forecast due to lower-than-expected growth in private investment and housing demand.
- As per the latest edition of Asian Development Outlook (ADO), changes in US trade, fiscal, and immigration policies could increase inflation in developing Asia and the Pacific.
- In 2024, Asia and the Pacific’s economies are expected to grow 4.9 per cent in 2024.
- ADB has also lowered India’s growth forecast for 2025-26 financial year to 6.6 per cent from 7.2 per cent earlier.
- India’s GDP growth fell to a 7-quarter low of 5.4% in July-September of FY25 as against RBI’s projection of 7%.
Southeast Asia’s growth outlook has been upped to 4.7% this year from earlier forecast of 4.5%.