ADB lowers regional growth outlook amid Middle East war
The ADB cut its 2026 growth forecast for Asia to 4.7 percent and raised inflation views to 5.2 percent. It cited war-driven energy and trade disruptions.
The Asian Development Bank cut its regional growth forecast to 4.7% this year and 4.8% next year as Middle East conflict disrupts trade. Projections previously held at 5.1% for both years before war-driven energy price spikes and tighter financial conditions impacted economic activity. Investors face systemic disruptions to global energy networks and a sharp rise in regional inflation forecasts to 5.2%.
ADB President Masato Kanda stated the revision reflects long-lasting disruptions to global energy and trade networks rather than temporary volatility. The International Monetary Fund (IMF) previously lowered its 2026 global growth outlook to 3.1% following the outbreak of war in Iran.
