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ADB Warns Middle East Conflict Could Slash Asia-Pacific Growth

3/26/2026

Summary

Story summary

The Asian Development Bank (ADB) warns the Middle East conflict could reduce Asia-Pacific growth by 0.3–1.3 percentage points and raise inflation by 0.6–3.2 points in 2026–2027.
The impact depends on energy-disruption duration.
Prolonged conflicts may pose severe challenges for Southeast Asia and South Asia.
The ADB urges governments to stabilize markets and protect vulnerable populations, and central banks to manage volatility and inflation expectations.

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Story summary

The Asian Development Bank (ADB) warns the Middle East conflict could reduce Asia-Pacific growth by 0.3–1.3 percentage points and raise inflation by 0.6–3.2 points in 2026–2027.
The impact depends on energy-disruption duration.
Prolonged conflicts may pose severe challenges for Southeast Asia and South Asia.
The ADB urges governments to stabilize markets and protect vulnerable populations, and central banks to manage volatility and inflation expectations.