IMF warns Middle East conflict could hit Asia's energy supplies
The International Monetary Fund (IMF) is cautioning that the ongoing Middle East conflict might hit Asia hard, since so much of the region's energy, like oil and gas, comes from there.
If supplies get disrupted, Asia could see slower economic growth, higher prices on everyday essentials, and more pressure on its finances.
Krishna Srinivasan, Director of the IMF's Asia-Pacific department, summed it up: "This is a shock, which is going to affect Asia more than other regions."
IMF: Asia growth 4.4% inflation 2.6%
Even though 2026 started off looking good (thanks in part to lower US tariffs), the IMF now expects Asia's growth rate to dip, from 5% in 2025 down to 4.4% in 2026 and then 4.2% in 2027.
Inflation is also likely to rise as energy costs go up, possibly reaching 2.6% in 2026 (up from just 1.4% in 2025).
The IMF says central banks need to stay alert and be ready with smart policies if things get rocky.