Economic growth across Asia will likely slow even if oil prices stabilize in the coming months, as the impact of war in the Middle East ripples through industries from manufacturing to tourism, according to the Asian Development Bank (ADB).
The U.S. and Israeli war on Iran is projected to halt developing Asia’s economic upswing, with the region’s gross domestic product expansion seen moderating to 5.1% this year from 5.4% in 2025, the ADB said in its Asian Development Outlook report that was released Friday.
The report’s projections were finalized more than a week into the Iran war, which started Feb. 28, and assume a scenario in which oil prices will gradually normalize and move toward prewar levels by year-end. The situation remains volatile, with oil prices whipsawing on daily developments in the conflict.