Asia growth to slow even if oil prices stabilize: ADB

Economic growth across Asia would 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, the Asian Development Bank (ADB) said. The US and Israeli war on Iran is projected to halt developing Asia’s economic upswing, with the region’s GDP expansion seen moderating to 5.1 percent this year from 5.4 percent last year, the ADB said in its Asian Development Outlook report released yesterday. The report’s projections were finalized more than a week into the Iran war, which started on Feb. 28, and assume a scenario where oil prices would gradually normalize and move toward pre-war levels by year-end. The situation remains volatile, with oil prices whipsawing on daily developments in the conflict. “Developing Asia and the Pacific’s economic ascent faces a formidable test,” ADB President Masato Kanda said in the report. “While the region’s direct exposure is limited, it remains ...