The Asian Development Bank (ADB) on Wednesday lowered its economic growth outlook for developing Asia and the Pacific, warning that ongoing conflict in the Middle East is causing deeper and longer-lasting disruptions than expected.
ADB president Masato Kanda said the crisis is driving up energy prices, tightening financial conditions, and slowing economic activity across the region. He added that the situation is no longer temporary and is affecting global energy and trade systems.
In its updated forecast, ADB now expects regional growth to reach 4.7 percent this year and 4.8 percent next year—down from its earlier estimate of 5.1 percent for both years.
At the same time, inflation is projected to rise to 5.2 percent this year, up from 3 percent last year, before easing to 4.1 percent by 2027.
ADB said it will continue monitoring risks closely and step up support to help economies in the region cope with the impact.
