Regional Economic Outlook for Asia and Pacific, April 2026

Asia’s economic resilience is being put to the test by the war in the Middle East and ensuing energy shock

Asia’s economy entered 2026 on solid ground, showing resilience despite last year’s trade tensions. But the war in the Middle East has triggered an energy shock that is now testing that strength. Higher oil and gas prices are pushing up inflation, widening trade gaps, and limiting governments’ room to respond—especially in economies that depend heavily on imported fuel.

While Asia is still set to lead global growth, the risks have clearly risen if the shock lasts longer or worsens. The moment calls for the right policy choices: protecting vulnerable people, letting prices reflect reality, maintaining people’s confidence that prices won’t keep rising, and speeding up reforms that boost resilience—from stronger safety nets to cleaner, more reliable energy.