Asia's economic growth will slow to 5.7 percent in 2016 and 2017, weighed down by a slowing China and a weak recovery in developed economies, the Asian Development Bank (ADB) said in the latest report.
The region's economy had expanded 5.9 percent in 2015.
ADB said China's annual growth rate will slow down to 6.5 percent this year and fall further to 6.3 percent in 2017, while the developed economies will grow at 1.8 percent in 2016 and 1.9 percent in 2017.
"Growth is slowing across much of developing Asia as a result of the continued weak recovery in major industrial economies and softer growth prospects for the People's Republic of China (PRC)," AD said in its Asian Development Outlook report.
ADB, however, said a modest recovery in Southeast Asia and sustained growth in India will partly offset continued decline in China and the spillover impact on the neighboring economies.
The report said despite global headwinds, the developing Asia will continue to contribute 60 percent of world growth.
Southeast Asian economies will post stronger growth in the next two years, led by Indonesia, the report said.
Output from the region will accelerates steadily from 4.4 percent in 2015 to 4.5 percent in 2016 and 4.8 percent in 2017.
"Regional growth will be led by Indonesia as it ramps up investment in infrastructure and implements policy reforms that spur private investment."
Countries across the region should continue to implement productivity-enhancing reforms, investment in under-supplied infrastructure, and sound macroeconomic management to help increase their growth potential and insulate themselves from global instability, the report said.
ADB said while tepid oil and commodity prices will dampen the prospects of Asia's commodity-dependent economies, the lingering effects of the El Niño weather cycle will affect countries that depend on agriculture.
India will remain one of the fastest growing major economies in the years ahead, with growth reaching 7.4 percent in 2016 before picking up to 7.8 percent in 2017.