Kathmandu. The Asian Development Bank (ADB) has projected that the economic growth rate of the Asian region will be 4.9 percent in 2025 and that of Nepal will be 4.4 percent.
The ADB today released the ‘Asian Development Outlook (2025)’ report, projecting the economic growth rate and inflation rate of Asian countries. The report states that trade uncertainty in Asia and the Pacific, due to the customs policy decided by the US, geopolitical tensions, and other factors, will affect economic growth rate and inflation rate.
The ADB stated that after the US imposed new customs rates, it has created trade uncertainty worldwide. Analyzing the regional impact of the US customs tariffs, the ADB has projected economic growth rate in Asia and the Pacific to be 4.9 percent in 2025 and 4.7 percent in 2026. It is estimated to shrink by 10 percent.
Similarly, the region’s inflation is projected to decline to 2.3 percent in 2025 and 2.2 percent in 2026. Inflation in the Asia region was 2.6 percent in 2024. Inflation in Nepal is estimated to be 5.2 percent in 2025 and 5 percent in 2026.
The ADB has stated that the impact on inflation was seen when the supply chain was affected due to the floods and landslides that occurred last Asoj. Nepal’s economic growth rate is estimated to be 5.1 percent in 2026.
‘The full implementation of the US tariffs announced in early April and further US trade policy changes are expected to lead to a decline in economic growth. There may be additional uncertainty in the trade sector,’ the report said.
In addition, expansionary fiscal policies are expected to increase inflation. ADB estimates that risks will increase due to supply chain disruptions due to tensions in the Middle East, rising food and energy prices, global economic uncertainty, and the problems created by the Ukraine-Russia war.
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