ADB cuts Asia growth to 5.1%, blames Middle East conflict
Asia's economic outlook just got gloomier.
The Asian Development Bank (ADB) now expects the region to grow by only 5.1% in 2026 and 2027, mostly because the ongoing Middle East conflict is making things tough.
If tensions drag on, growth could slip further to 4.7% by 2026, especially with energy prices rising and inflation pressuring countries that rely on imported fuel.
ADB warns inflation could hit 5.6%
ADB's Chief Economist Albert Park put it simply: "Higher energy prices can generate significant income losses," Park said.
The report warns inflation could jump to 5.6% as supply chains get disrupted and financial pressures mount.
There are also new worries about food security, with Iran's actions in the Strait of Hormuz pushing up agricultural costs.
Meanwhile, China faces its own struggles: growth there is expected to slow to 4.6% this year due to property market troubles and weaker demand for exports.