June 16, 2025 | Manila — Under the leadership of its new president, Masato Kanda, the Asian Development Bank (ADB) has issued an upbeat yet cautionary message: while Asia is better equipped than ever to withstand economic shocks, the region must further fortify itself against growing trade and tariff turbulence.💪 Strength in ResilienceIn his first major interview marking 100 days in office, Kanda noted Asia enters today’s trade tensions from a stronger baseline than during past crises like the Asian financial meltdown. He emphasized that proactive reforms and openness are key to sustaining stability and prosperity .⚠️ Persistent Threats: Tariffs & Trade WarsThe ADB’s projections forecast Asia’s GDP growth slowing slightly—from 5 % in 2024 to 4.9 % in 2025 and 4.7 % in 2026—based on current data before the imposition of new US tariffs . These tariffs, now broad in scope, threaten to depress both US and global economic momentum and inject volatility into East Asian export markets .Kanda and ADB Chief Economist Albert Park cautioned that rising tariff uncertainty and geopolitical tensions are already weighing on capital investment and investor confidence in emerging economies .🔧 What Asia Can Do NextKanda underscored several strategic moves: • Diversify trade and investment partners to reduce dependence on any single market • Boost domestic demand and reinforce internal markets • Accelerate structural reforms, including deregulation, vocational training, and digitalization • Strengthen regional connectivity, supporting initiatives like the $10 billion ASEAN Power Grid He added: “Uncertainty is not a reason for retreat. It is a call for action… we must be bolder, move faster, and work more closely” .💵 ADB Planning Expanded SupportQuantifying its commitment, the ADB has set aside an extra US $100 billion in “headroom”, aiming to scale its annual lending from US $24 billion to US $36 billion within a decade, targeting food security, digital infrastructure, sustainable energy, education, and emergency lending systems .🧭 Outlook: Cautious OptimismKanda struck a balanced tone: while Asia currently shows resilience, without accelerating structural reforms and regional integration, it risks vulnerability to future shocks. However, he believes the region could emerge stronger—“this too shall pass”—if it seizes the moment to reform .⸻In Summary: Asia is better positioned than ever to manage economic crises—but the ADB warns that to truly shield itself from trade wars and tariffs, countries must act decisively. Diversification, domestic demand, structural reform, and deeper regional ties are not just strategies—they are imperatives for maintaining prosperity in turbulent times.
