Asian Development Bank Forecasts Economic Slowdown Amid Middle East Tensions

The Asian Development Bank (ADB) released its "2026 Asian Development Outlook" report on April 10, highlighting increased geopolitical risks due to conflicts in the Middle East. According to Jin10, the report indicates that developing economies in the Asia-Pacific region are facing growing economic downturn risks. The ADB forecasts that if the Middle East situation stabilizes early, the economic growth rate for these economies will slow from 5.4% in 2025 to 5.1% in both 2026 and 2027. Inflation is expected to rise from 3.0% in 2025 to 3.6% in 2026 and 3.4% in 2027. However, if the turmoil in the Middle East persists until the third quarter of this year, the economic growth rate for the Asia-Pacific developing economies could slow further to 4.7% in 2026 and 4.8% in 2027, with inflation rising to 5.6% in 2026.