Asia Is Better Placed Now To Handle Crises: New ADB Chief

But there's more the region's economies can do to absorb the shocks of the trade and tariff turmoil.

- Ravi Velloor

This, too, shall pass. And for all you know, the region might even emerge stronger after the current trade and market turmoil.

That's the message from the new president of the Asian Development Bank (ADB) to an Asia buffeted by the Trump tariffs, geopolitical swells that are disrupting supply chains, and shifting trade patterns that are resulting in an avalanche of Chinese-made goods threatening domestic industry.

The ADB is forecasting growth in the region to slow from 5 per cent in 2024 to 4.9 per cent in 2025, and 4.7 per cent in 2026.

The forecast, it must be noted, was prepared before US President Donald Trump's "Liberation Day" tariffs were announced in early April.

Since then, the tariff uncertainty has darkened the outlook. Chinese exports to the US plunged 34 per cent in dollar terms in May, on a year-ago basis. The World Bank's latest economic outlook released this week says emerging and developing countries will see 3.8 per cent growth in 2025, down from 4.2 per cent in 2024.

Mr Masato Kanda, who took up the ADB presidency in end-February after stepping down as Japan's vice-minister of finance—his nation's top currency diplomat—said it is not possible to say with certainty how the interplay of the tariffs and geopolitical tensions will play out on already slowing economies.

Nevertheless, the prospects need not be too dismal.

"I remain cautiously optimistic that as long as we continue to reform and further open up our economies, we can be pretty confident that Asia will navigate these challenges and even turn them into opportunities to make our region more prosperous," Mr Kanda said in an interview on June 3, marking his 100th day in office.

The long-serving Japanese bureaucrat, who was special adviser to both his prime minister and finance minister, said that Asia had entered this round of turmoil from a relatively strong position.