The Asian Development Bank's (ADB) previous "early stabilization" scenario is no longer valid amid continued war in the Middle East, The Star reported Tuesday, citing ADB chief economist Albert Park's address to reporters.
This prompts a revision of the earlier outlook, he reportedly said, as the conflict has stretched beyond initial expectations. Under updated projections, regional growth is now seen slowing to 4.7% in 2026 and 4.8% in 2027, while inflation forecasts have also been revised higher to 5.2% this year.
Park warned that energy markets remain under pressure, with gas prices up around 30% and diesel rising even more sharply, while fertilizer costs have surged, raising risks for food and industrial supply chains. He also cautioned that prolonged disruption could keep oil prices elevated, with scenarios showing averages near $96 per barrel in 2026 and even higher in worst-case conditions, the news outlet said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)