Asian Development Bank chief economist Albert Park said the end of a Middle East
ceasefire has worsened the outlook for Asian developing economies. He warned
Renewed conflict would raise energy prices, lift risk premia, intensify inf
pressure and prolong regional supply-chain disruptions — the region is heavily
dependent on Middle East oil and gas. Market moves since the news suggest
escalation or sustained uncertainty could tighten global financial conditions
via risk repricing, wider spreads and a stronger dollar, lifting imported inf.
Park said higher debt-servicing costs, weaker investment and softer domestic
demand would hurt growth prospects for Asian developing economies.
