ADB warns Asia growth to slow sharply if Middle East disruptions persist

The outlook reinforces a stagflationary impulse across Asia, supportive for energy prices and inflation trades, while weighing on regional equities and growth-sensitive FX. It also strengthens the case for policy intervention and diversification strategies. ADB warns prolonged Middle East disruptions could significantly slow Asia growth and drive a sharp rise in inflation.Summary:ADB warns Asia-Pacific growth could slow sharply… ADB warns prolonged Middle East disruptions could significantly slow Asia growth and drive a sharp rise in inflation. . Summary: . ADB warns Asia-Pacific growth could slow sharply if Middle East di... ADB warns prolonged Middle East disruptions could significantly slow Asia growth and drive a sharp rise in inflation. Summary: ADB warns Asia-Pacific growth could slow sharply if Middle East disruptions persist Growth seen at 4.7% in 2026 under prolonged disruption vs ~5.1% baseline Region could lose 1.3pp of growth over 2026–27 if conflict drags on Inflation projected to surge to 5.6% under worst-case scenario Fragile ceasefire and Hormuz risks remain… For traders, the practical value is less about the headline alone and more about how it changes context, sentiment and the quality of the next decision. Watch follow-through, not just the first reaction: liquidity, volatility and confirmation across related assets usually tell the real story.