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      ADB Maintains China's Growth Forecast at 4.6%, Lowers Inflation Outlook

      The Asian Development Bank (ADB) has kept its growth forecast for China at 4.6% for 2026 and 4.5% for 2027, unchanged from previous estimates. This follows a growth rate of 5.0% in 2025. The ADB's latest report indicates that while China's economy is expected to grow steadily, inflation remains exceptionally low, with the forecast for 2026 reduced to 0.9% from 1.2% previously. This reflects a significant decline in price pressures within the world's second-largest economy, which contrasts sharply with rising inflation in other parts of Asia due to elevated energy costs linked to geopolitical tensions.

      The ADB also adjusted its growth projections for developing Asia and the Pacific, raising the 2026 forecast to 5.0% from 4.9%, while maintaining the 2027 estimate at 5.1%. This increase is attributed to resilient investment, government stimulus, and strong demand for artificial intelligence-related exports. Notably, India's growth forecast for 2026 has been upgraded to 7.0% from 6.6%, and Southeast Asia's forecast has risen to 4.7% from 4.6%.

      Despite these positive adjustments, the ADB cautioned that risks remain, particularly from high energy prices stemming from ongoing conflicts in the Middle East and Ukraine, as well as potential impacts from a strengthening El Niño. The report highlights a divergence in monetary policy across the region, as central banks navigate the balance between supporting growth and managing inflationary pressures. In China, the persistent gap between steady economic growth and near-zero inflation raises questions about the potential for increased government support to stimulate domestic demand.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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