Prolonged West Asia conflict to cut growth in Asia by 1.3 points, spike inflation by 3.2 points over 2026-27: ADB

The Asian Development Bank (ADB) has cautioned that a prolonged conflict in West Asia poses a significant threat to the economic stability of the Asian region. According to the latest projections for 2026-27, the persistence of hostilities could lead to a 1.3 percentage point reduction in GDP growth across Asia. Simultaneously, consumer price inflation is expected to surge by 3.2 percentage points as energy supply chains are disrupted and shipping costs rise. The ADB emphasizes that these shocks would particularly affect oil-importing nations and those heavily integrated into global trade routes passing through the affected zones.