Economic Forecasts for Asia and the Pacific: April 2026
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The economic growth of developing Asia and the Pacific is projected to moderate to 5.1% in 2026 and 2027 due to the Middle East conflict and higher energy prices. The region's inflation is expected to rise to 3.6% in 2026, driven by higher energy prices and normalization of export growth.
Developing Asia and the Pacific's economic growth is expected to slow down to 5.1% in 2026 and 2027. The Middle East conflict and higher energy prices are the main factors contributing to this slowdown. The region's inflation is projected to rise to 3.6% in 2026. Higher energy prices will increase production costs and consumer prices. Export growth will normalize after last year's front-loading ahead of US tariff increases. Solid domestic demand will continue to support growth, particularly in South Asia and developing Southeast Asia.
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