ADB: Middle East Conflict Could Cut Asia's Growth by 1.3% and Raise Inflation by 3.2%
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Iran Crisis Threatens Asia: Growth Down 1.3%, Inflation Up 3.2% - ADB Warns
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Firstpost•27-03-2026, 14:11
Iran Crisis Threatens Asia: Growth Down 1.3%, Inflation Up 3.2% - ADB Warns
•Asian Development Bank (ADB) warns Middle East conflict could cut Asia's growth by 1.3 percentage points and boost inflation by 3.2 percentage points by 2026–27.
•The conflict poses macroeconomic risks through energy markets, trade routes, and financial systems, impacting Asia and the Pacific.
•Strait of Hormuz, vital for 20% of global oil and LNG trade, is a major concern; disruptions have caused crude prices to surge.
•Supply chain disruptions, tightening financial conditions, and reduced remittances from Gulf economies are also critical impacts.
•ADB advises preemptive action: prioritize macroeconomic stability, diversify energy sources, strengthen supply chain resilience, and use targeted fiscal interventions.
