ECONOMIC FORECASTS FOR ASIA AND THE PACIFIC: JULY 2026
The Middle East conflict is expected to weigh more heavily on developing Asia and the Pacific than earlier anticipated, with growth moderating to 4.9% this year, down from 5.5% in 2025.
Activity remained firm in early 2026, supported by consumption and investment, but higher energy costs, supply disruptions, and tighter financial conditions are expected to dampen growth in the coming months, with effects unwinding only gradually.
JULY 10, 2026 – ADB
Inflation is projected to rise further as higher energy prices pass through to food and other costs. Price pressures have broadened and are likely to remain elevated for some time, even as oil prices ease.
GDP Growth: Developing Asia and the Pacific
Inflation: Developing Asia and the Pacific
The region remains resilient, but policymakers will need to balance support for growth with efforts to contain inflation, while guarding against several risks.
