Prolonged Disruptions from Middle East Conflict Could Choke Growth and Spur Inflation in Asia and the Pacific: ADB Research
The conflict in the Middle East could lower economic growth in developing Asia and the Pacific by up to 1.3 percentage points over 2026-2027 and raise inflation by 3.2 percentage points if energy market disruptions last more than a year, according to new research by the Asian Development Bank (ADB).
The conflict affects economies in Asia and the Pacific through higher energy prices, supply chain and trade disruptions, and tighter financial conditions. Tourism and remittances could also be impacted.
An ADB brief outlines three risk scenarios indicating that effects on the region's developing economies will depend largely on the duration of disruptions. Under a short-lived conflict, energy price pressures would ease relatively quickly. More prolonged disruptions would lead to larger and more persistent impacts on growth and inflation.
News Release: Prolonged Disruptions from Middle East Conflict Could Choke Growth and Spur Inflation in Asia and the Pacific: ADB Research | Asian Development Bank
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