Home » ADB Forecasts Sluggish Economic Expansion and Rising Inflation in Asia Pacific Amid Ongoing Iran Conflict

ADB Forecasts Sluggish Economic Expansion and Rising Inflation in Asia Pacific Amid Ongoing Iran Conflict

The Asian Development Bank has issued a warning that the ongoing Middle East conflict is poised to have a profound impact on the Asia Pacific region’s economic trajectory, with growth expected to slow and inflation on the rise.
According to the bank’s president, Masato Kanda, the conflict represents a significant challenge to the region’s economic resilience, underscoring the need for vigilance and strategic planning.
ADB analysis suggests that if the conflict persists into the third quarter of this year, the region’s growth rate could dip to 4.7 percent, a decline from last year’s 5.4 percent. Conversely, inflation is forecast to surge to 5.6 percent in 2026, up from 3.0 percent in the previous year.

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