ISLAMABAD (Lord Media): The Asian Development Bank (ADB) has revised its economic growth forecast for developing Asia and Pacific economies down to 4.9% for 2026, from 5.5% in 2025. This adjustment is 0.2 percentage points lower than the estimates released in April.
According to ADB’s July 2026 report, disruptions in global energy markets due to the Middle East conflict have impacted the region’s economic situation more than expected. However, the growth forecast for 2027 remains steady at 5.1%.
The report indicates that despite disruptions in energy markets, inflationary pressures are likely to increase due to persistent effects on other raw materials and supply chains. Inflation is projected to be 4.3% in 2026, up from 3% in 2025.
ADB Chief Economist Albert Park stated that if the framework agreement is implemented, normalcy in energy markets could be restored. However, the pace of this process is uncertain and carries significant downside risks.
The report warns that geopolitical uncertainties could further affect energy markets, leading to increased inflation and external pressures.
Additionally, tightening global financial conditions, rising bond yields, and increasing fertilizer prices pose risks to the region’s economy and food security.
