The World Bank lowered its 2026 economic growth forecast for the East Asia and Pacific region as the conflict in the Middle East raises energy costs, disrupts supply chains, and weighs on external demand.
The international organization said it expects growth in East Asia and the Pacific to moderate to 4.2% in 2026 from 5.0% in 2025, according to its Global Economic Prospects report released Thursday.
Growth in the region is projected to edge up to 4.3% in 2027 and 2028 as energy prices ease and geopolitical uncertainty diminishes.
Excluding China, economic growth is forecast at 4.4% in 2026, down from 4.8% in 2025, before improving to 4.9% in 2027 and 2028.