-- The Middle East outlook and consequent higher oil prices will temper the economic expansion of developing countries in the Asia Pacific in 2026, reported the Asian Development Bank (ADB) late Friday.
Economic growth in developing Asia is expected to slow to 5.1% in both 2026 and 2027, down from the previous 5.4% estimate, weighed down by the Persian Gulf conflict and continuing trade uncertainty, said the ADB.
The Asian Development Bank (ADB) makes economic projections for developing nations in Asia, focusing on gross domestic product (GDP) growth and inflation outlooks. The ADB forecasts cover 46 nations, including China and India, and all 10 ASEAN members.
"Higher energy prices will raise production costs and consumer prices, while export growth will normalize following last year's front-loading ahead of US tariff increases," said the ADB. "Solid domestic demand---particularly in South Asia and developing Southeast Asia---will continue to anchor growth."
Regional inflation is projected to rise to 3.6% in 2026 and 3.4% in 2027, up from 3% last year, added the ADB.
GDP growth in China is projected to decline to 4.6% in 2026 and 4.5% in 2027, down from 5% in 2025, "with continued property market weakness and slower export expansion expected to weigh on activity," said the ADB.
"In India, growth is forecast to ease to 6.9% this year from 7.6% last year, before rising to 7.3% next year, underpinned by resilient domestic consumption," added the ADB, a Manila-based regional bank that lends on infrastructure and other projects.