The annual Asian Development Outlook presents an analysis of developing Asia’s recent economic performance plus its prospects for the next two years. This Update shows whether these forecasts were met, explaining divergence between forecasts and the actual out turn, and firms the forecasts for the next 18 months or so. The Update expects developing Asia to sustain its robust growth over the next 2 years, despite the tepid outlook for the United States, the eurozone, and Japan. The region will be buttressed by healthy domestic demand and buoyant intraregional trade. Managing inflation has to be a key focus for policy makers, to allow for inclusive growth.