rki.news | Source: Xinhua News Agency
The Asian Development Bank (ADB) has downgraded its economic growth outlook for developing Asia and the Pacific, citing prolonged disruptions from the ongoing conflict in the Middle East, while raising inflation projections for the region.
In its latest assessment released in Manila, the bank projected regional growth at 4.7 percent in 2026 and 4.8 percent in 2027, down from earlier estimates of 5.1 percent for both years. The revision reflects continued instability in global energy markets and trade flows.
Inflation forecasts were also revised upward, with the region now expected to reach 5.2 percent in 2026, compared to 3 percent last year, before easing to 4.1 percent in 2027.
The ADB noted its baseline outlook assumes crude oil prices averaging around 96 U.S. dollars per barrel in 2026, easing to about 80 dollars in 2027, both significantly above pre-conflict levels.
Under a more severe scenario involving renewed escalation, growth could slow to 4.2 percent in 2026 and 4 percent in 2027, while inflation may surge to as high as 7.4 percent.
The bank warned that economies reliant on imported energy, remittances, tourism, and external financing remain vulnerable, adding that disruptions to global energy and trade networks could persist beyond short-term volatility.