With reference to the Asian Development Bank (ADB) and national income accounting, consider the following statements: 1. The Asian Development Outlook is a flagship economic publication of the Asian Development Bank. 2. A decrease in net exports due to foreign tariffs directly reduces the calculated GDP under the expenditure method. Which of the statements given above is/are correct?

Question

Accepted Answer

c) Both 1 and 2 — Statement 1 is correct as the ADO is ADB's premier economic forecasting report. Statement 2 is correct because in the expenditure method of National Income Accounting (GDP = C + I + G + NX), a fall in Net Exports (NX) due to tariffs mathematically reduces overall GDP, a dynamic reflected in ADB's downgraded forecast for India.

ADB Forecasts India's GDP Growth at 6.5% for FY2026

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