Updated
Updated · Asian Development Bank · Jul 9
ADB Sees Developing Asia Growth Slow to 4.9% as 2026 Inflation Rises to 4.3%
Updated
Updated · Asian Development Bank · Jul 9

ADB Sees Developing Asia Growth Slow to 4.9% as 2026 Inflation Rises to 4.3%

3 articles · Updated · Asian Development Bank · Jul 9

Summary

  • Growth in developing Asia and the Pacific is now forecast at 4.9% in 2026, down from 5.5% in 2025, while 2027 growth is held at 5.1%.
  • Higher energy costs, shipping disruptions and tighter financial conditions from the Middle East conflict are expected to weaken activity after a firm start to 2026, with the drag fading only gradually.
  • Inflation is projected at 4.3% in 2026 and 3.4% in 2027 as energy-price pass-through broadens into food and other costs, with supply-chain bottlenecks likely to keep price pressures elevated even if oil eases.
  • ADB said policymakers must balance growth support with inflation control, while risks include renewed conflict escalation, tighter energy markets, higher risk premia and fresh US tariff uncertainty.

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