Economic growth across developing Asia-Pacific nations decelerated to 4.6% in 2025 and is forecast to fall further to 4% in 2026, according to the annual Economic and Social Survey released by UN-ESCAP (the UN's regional commission for Asia and the Pacific), down from 4.8% in 2024 and 5.3% in 2023. The report attributes the slowdown primarily to the ongoing Middle East conflict, which is disrupting energy prices, supply chains, and external demand, while also flagging renewed global trade tensions and financial market volatility as additional risks. UN-ESCAP urged governments in the region to boost domestic and regional demand, adopt targeted fiscal measures to protect vulnerable populations, and carefully manage the shift away from fossil fuels — which account for 75% of the region's greenhouse gas emissions — to avoid compounding economic and social disruption.
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Tuesday, 21 April 2026
Asia-Pacific economic growth slows as Middle East conflict and global tensions weigh on region[Updated]
Monday, 20 April 2026, 08:12 · 1 min read
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Pakistan has become one of the first countries in the region to officially confirm growth will fall short of targets, with Planning Minister Ahsan Iqbal acknowledging the country's 4.2% growth goal is at risk. The government has slashed its public sector development programme by Rs173 billion to Rs837 billion, redirecting funds to a Prime Minister's Austerity Fund created to subsidise diesel prices during the harvesting season. International lenders have projected Pakistan's actual growth rate could be significantly lower, between 3.2% and 3.5%. Iqbal also revealed that Pakistan is facilitating a second round of US-Iran talks aimed at easing the Middle East tensions that are contributing to the region's broader economic strain.
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