Amid global energy crisis, ADB maintains its economic growth forecast for Georgia for 2026 unchanged, while projecting slowdown in growth for Asia-Pacific region

The Middle East conflict is expected to weigh more heavily on developing Asia and the Pacific than earlier anticipated, with growth moderating to 4.9% this year, down from 5.5% in 2025.

Based on the July 2026 Economic Forecasts for Asia and the Pacific published by the Asian Development Bank (ADB), Activity remained firm in early 2026, supported by consumption and investment, but higher energy costs, supply disruptions, and tighter financial conditions are expected to dampen growth in the coming months, with effects unwinding only gradually.

Inflation is projected to rise further as higher energy prices pass through to food and other costs. Price pressures have broadened and are likely to remain elevated for some time, even as oil prices ease.

The region remains resilient, but policymakers will need to balance support for growth with efforts to contain inflation, while guarding against several risks.

Re-escalation of the conflict and prolonged energy market uncertainty remain key threats to the outlook. These could further tighten energy markets, raise risk premia, and intensify inflationary and external pressures. New tariffs and elevated trade policy uncertainty could also weigh on the region’s prospects.

Against the backdrop of the global energy crisis, the Asian Development Bank maintains its economic growth forecast for Georgia for 2026 unchanged, while projecting a slowdown in growth for the Asia-Pacific region.