23-Apr-2026 11:39

Rising inflation pressures, driven by surging energy and food prices linked to the ongoing conflict in West Asia, are clouding the economic outlook for Asia and the Pacific, the United Nations has warned in a new report, even as the region remains the world's fastest-growing developing bloc. The Economic and Social Survey of Asia and the Pacific 2026, released by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), projects that inflation in developing economies in the region will hit 4.6 per cent in 2026, up from 3.5 per cent in 2025, reversing recent stability gains. At the same time, growth is expected to slow to 4 per cent from 4.6 per cent. The report noted that despite the slowdown, Asia-Pacific remains the fastest-growing developing region globally. However, the least developed countries are growing more slowly, youth unemployment remains elevated, and inequality risks are rising.

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