Sri Lanka, April 11 -- Economies in developing Asia and the Pacific are projected to grow 4.9% this year, down from 5 % last year, according to the latest forecast by the Asian Development Bank (ADB).

Solid domestic demand and strong global appetite for semiconductors driven by the artificial intelligence boom are supporting growth, but tariffs and trade uncertainty will act as a headwind. Regional growth is expected to decline further to 4.7% next year, according to Asian Development Outlook (ADO) April 2025, released today. Inflation is projected to moderate to 2.3% this year and 2.2% next year as global food and energy prices continue to decline.

The growth forecasts were finalized prior to the April 2 announcement of new tariffs by ...