ADB sees modest growth impact on Asia if Middle East conflict lasts about a month

Record ID: 2362005

  • Title: ADB sees modest growth impact on Asia if Middle East conflict lasts about a month
  • Date: 6th March 2026
  • Summary: BANGKOK, THAILAND (MARCH 6, 2026) (REUTERS) (SOUNDBITE) (English) ASIAN DEVELOPMENT BANK CHIEF ECONOMIST, ALBERT PARK, SAYING: “No, I don't think the impacts have been surprising. I think, I think everyone has always felt that if the Strait of Hormuz is closed down, that this is going to affect global energy prices and create quite a lot of uncertainty and concern. And so
  • Embargoed:
  • Keywords: Asia Asian Development Bank Hormuz Iran conflict economy markets oil
  • Location: BANGKOK, THAILAND / MANILA, PHILIPPINES /  SEOUL, SOUTH KOREA / TAIPEI, TAIWAN
  • City: BANGKOK, THAILAND / MANILA, PHILIPPINES /  SEOUL, SOUTH KOREA / TAIPEI, TAIWAN
  • Country: Philippines
  • Topics: Asia / Pacific,Government/Politics,International Trade
  • Reuters ID: LVA001148306032026RP1
  • Aspect Ratio: 16:9
  • Story Text: The Asian Development Bank's chief economist said on Friday (March 6) that if the Middle East conflict and closure of the Strait of Hormuz lasts only about a month, as some U.S. projections suggest, the impact on growth in developing Asia would be modest, with only a slight and temporary "downward blip" in annual GDP.
    "Most of the scenarios … suggest that the impacts will be, of course, negative, but relatively modest," ADB Chief Economist Albert Park told Reuters in an interview, adding that even under pessimistic assumptions, the shock would not reduce regional growth by a full percentage point.
    Developing Asia consists of 46 economies ranging from China and India to Georgia and Samoa, but excluding Japan, Australia and New Zealand.
    Before the conflict, the ADB had projected the region to slow to 4.6% this year from the 5.1% growth expected in 2025. It also forecast a slight acceleration in inflation to 2.1% this year, from last year's 1.6% estimate.
    (Production: Peter Blaza)
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