.png)
Loading...
23 June 2026 / Report
Email
Linkedin
Facebook
X
Copy LinkLooking at headline GDP growth, economies across Asia-Pacific remain relatively resilient. However, the prolonged Middle East crisis is increasingly feeding through the region via higher energy costs, supply chain disruptions, and rising inflationary pressures. Governments have sought to cushion the impact through fuel subsidies, targeted fiscal support, and price controls, aiming to limit the immediate fallout.
The recently announced memorandum of understanding (MoU) between the US and Iran—if it holds—could begin to ease some of the most immediate pressures but the economic effects of the crisis will continue to weigh on the region in the near term until normalization sets in.
The crisis is beginning to expose underlying structural weaknesses in some of the most vulnerable economies. Most notable, the prolonged support measures aimed to east rising cost of living are placing growing strain on fiscal budgets. Currency pressures are also intensifying in emerging markets as capital is seeking safer destinations. In an effort to fight inflation and counter capital flight, some central banks across Asia-Pacific have started to tighten monetary policy.
myTCB® Members get exclusive access to webcasts, publications, data and analysis, plus discounts to events.
