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

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

The Asian Development Bank has issued a warning that the ongoing Middle East conflict will likely have a profound impact on the Asia Pacific region’s economic trajectory, with growth expected to slow and inflation to surge in the remainder of the year.
According to Masato Kanda, president of the ADB, the conflict poses a significant challenge to the region’s economic expansion, representing a formidable obstacle that must be navigated.
ADB analysts predict that if hostilities persist into the third quarter of this year, the region’s growth rate could drop to 4.7 percent, a decline from last year’s 5.4 percent. Furthermore, inflation is forecast to rise to 5.6 percent in 2026, up from 3.0 percent in the previous year.

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