---
title: "Iran Situation | ADB Warns: Conflict Affects Multiple Industries, Regional Economic Growth May Slow"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/282286046.md"
description: "The Asian Development Bank warns that the Middle East conflict will affect multiple industries, leading to a slowdown in economic growth in the Asia region. According to the latest \"Asian Development Outlook\" report, economic growth is expected to decline from 5.4% last year to 5.1% this year, while the inflation rate is projected to rise from 3% to 3.6%. Although the direct impact of the war on developing countries is limited, rising energy and commodity prices will exacerbate inflation and tighten the financial environment. If the conflict continues for a year, the economic growth rate could decrease by about 1.3 percentage points. The ADB calls for measures to address inflation and financial pressures while accelerating energy diversification"
datetime: "2026-04-10T04:05:21.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/282286046.md)
  - [en](https://longbridge.com/en/news/282286046.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/282286046.md)
---

# Iran Situation | ADB Warns: Conflict Affects Multiple Industries, Regional Economic Growth May Slow

The Asian Development Bank warns that even if oil prices stabilize in the coming months, the impact of the Middle East conflict will still affect multiple industries, and economic growth in Asia may slow down. The ADB's latest report, "Asian Development Outlook," indicates that under the baseline scenario, where the situation in the Middle East stabilizes in the short term, economic growth in the Asia region is expected to slow from 5.4% last year to 5.1% this year, while the inflation rate is estimated to rise from 3% last year to 3.6% this year.

The report further adds that although the direct impact of the war on developing countries in Asia is limited, they remain more susceptible to rising energy and other commodity prices, which will exacerbate inflation and lead to a tightening of the financial environment. The bank estimates that if the Middle East conflict continues for a year, the economic growth rate in the region may decrease by about 1.3 percentage points over the next two years.

The ADB predicts that as the largest economy in Asia, China's economic growth rate will slow from 5% in 2025 to 4.6% this year, and further drop to 4.5% next year, with domestic consumption expected to remain sluggish. Additionally, due to the economic slowdown in Hong Kong, Japan, Singapore, and Taiwan, the economic growth of developed economies in the Asia-Pacific region will decline from 2.5% last year to 2.2% this year.

ADB Chief Economist Albert Park stated that the ongoing Middle East conflict and related energy disruptions are likely to exceed expectations, and the ceasefire agreement between the U.S. and Iran appears quite fragile, leading the market to believe that it is unlikely to last. Therefore, it is difficult to predict whether there will be a substantial improvement in growth prospects. He believes that the current policy focus should be on curbing inflation and financial pressures in the short term while accelerating energy diversification and improving energy efficiency to reduce future vulnerabilities

## Related News & Research

- [8 partners set to transform the future of energy consulting](https://longbridge.com/en/news/284341842.md)
- [4 charts show how war is throttling Iran's economy](https://longbridge.com/en/news/284801269.md)
- [Trump: We didn't need any help with Iran.](https://longbridge.com/en/news/284842446.md)
- [Shop price inflation falls on back of heavy discounting by retailers](https://longbridge.com/en/news/284279883.md)
- [What America is getting right on energy](https://longbridge.com/en/news/284366590.md)