Asian economies fear more pain from rising prices as they confront the rising threat that prolonged conflict in the Middle East could trigger a region-wide growth shock.
The region is at the heart of fears over the economic fallout from the war because of its heavy reliance on energy supplied from the Middle East. Officials from Australia to Bangladesh are warning that soaring import costs are likely to push inflation considerably higher than projections made just weeks earlier.
With economic activity in deeper doubt, the multinational Asian Development Bank has cut its growth outlook for developing economies in the region compared with forecasts made just a month ago. It now predicts a 4.7 per cent expansion this year and 4.8 per cent in 2027, down from forecasts of 5.1 per cent for both years.