The United Nations has warned that rising tensions in the Middle East are weakening the economic outlook for the Asia-Pacific region. The warning is significant as it highlights growing risks to inflation, trade stability, and growth across developing economies. The region faces increasing pressure from energy and food price volatility.
According to the United Nations Economic and Social Commission for Asia and the Pacific, growth in developing Asia-Pacific economies is projected to slow to 4.6% in 2025. It is expected to further decline to 4.0% in 2026. Inflation is also projected to rise from 3.5% to 4.6% over the same period.
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The report said geopolitical tensions are disrupting energy markets, commodity flows, and global trade routes. It added that rising fuel and food costs are increasing the cost of living across the region. Low-income households are expected to be hit the hardest due to limited financial protection.
UN Secretary-General António Guterres warned that dependence on fossil fuels makes economies vulnerable to conflict-driven shocks. The report also said high public debt and rising interest rates could limit government responses to future crises. Policymakers were urged to strengthen domestic demand and regional cooperation.
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The UN further recommended accelerating renewable energy adoption while managing risks of poorly designed transitions. It stressed that reforms must be gradual and tailored to national conditions. The report concluded that coordinated global action is needed to reduce inequality and economic fragmentation.