ADB cuts growth outlook for Asia-Pacific, raises inflation forecast on energy shock
The Asian Development Bank (ADB) has lowered its economic growth forecast for developing Asia and the Pacific to 4.7% in 2026 and 4.8% in 2027 due to prolonged disruptions from the conflict in the Middle East. The ADB also raised its inflation outlook, expecting it to reach 5.2% this year.
The Asian Development Bank (ADB) has lowered its economic growth forecast for developing Asia and the Pacific. The region is expected to grow 4.7% in 2026 and 4.8% in 2027, down from an earlier projection of 5.1% for both years. The ADB raised its inflation outlook, expecting it to reach 5.2% this year before easing to 4.1% in 2027. The revision reflects systemic disruptions to global energy and trade networks driven by sustained pressure on oil and gas prices. ADB President Masato Kanda stated that the region is facing long-lasting disruptions, not just temporary volatility. The ADB recommended targeted fiscal support for vulnerable groups and measures to reduce energy consumption.
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