ADB chief warns Asia-Pacific inflation could worsen as growth slows
Asian Development Bank President Masato Kanda warned that inflation in the Asia-Pacific could persist and worsen. The bank projects growth in emerging Asia-Pacific economies will slow to 5.0% in 2026, while it has provided $5.6 billion in financial support.
AI-assisted synthesis · Based on 2 independent reports from 3 outletsHow it's made
View timeline · 3 entriesWhat happened
Key facts
- Masato Kanda, president of the Asian Development Bank (ADB), warned inflation in the Asia-Pacific may continue and “even deteriorate further.”
- The ADB projects growth in emerging Asia-Pacific economies will slow to 5.0% in 2026 from 5.5% in 2025, according to the ADB’s economic outlook cited by Kanda.
- Kanda said rising long-term interest rates in developed economies have increased repayment burdens for developing nations with large dollar-denominated debt.
- The ADB’s next annual meeting will be held in May next year in Nagoya; Kanda said it is an opportunity to promote reforms and strengthen resilience through regional cooperation.
- Given Asian countries’ heavy reliance on the Middle East for crude oil and natural gas, the ADB has provided $5.6 billion in financial support.
The brief
Asian Development Bank President Masato Kanda warned that inflation in the Asia-Pacific could persist and worsen, as the bank projects growth in emerging economies across the region will slow to 5.0% in 2026 from 5.5% in 2025. The warning places the inflation risk alongside a weaker growth outlook, while the ADB says it has provided $5.6 billion in financial support.
Kanda made the comments during a visit to Bangkok. Nation Thailand reported that he was there for the 2026 Annual Meetings of the International Monetary Fund and the World Bank Group. The Japan Times reported that he discussed the outlook in an interview in Bangkok.
The accounts share the central warning and growth forecast, with The Japan Times giving more detail on the risks Kanda cited. Those risks include soaring energy prices linked in The Japan Times’ account to turmoil in the Middle East, a worsening El Niño phenomenon and increasingly severe natural disasters associated with climate change.
Kanda described the broader economic environment as facing “unprecedented uncertainty.” The sources do not establish how much each factor contributes to inflation, or quantify its separate effect on growth. The ADB’s $5.6 billion in financial support is reported in both accounts.
They connect the support to Asian countries’ heavy reliance on Middle Eastern supplies of crude oil and natural gas. Neither account specifies the timing or distribution of the support, so the reported figure does not show how much went to any particular country or program.
Kanda also pointed to a financing pressure affecting developing nations: higher long-term interest rates in developed economies, which he said have increased repayment burdens for countries with large dollar-denominated debt. The Japan Times provides that debt-related detail; Nation Thailand emphasizes borrowing costs alongside the growth forecast and the bank’s support.
Neither account gives a debt total or names particular countries facing the greatest repayment pressure. The outlook links a projected slowdown with inflation risks and more expensive debt service, but the reports do not quantify how those pressures vary across economies.
The growth figure applies to emerging economies in the Asia-Pacific, while Kanda’s inflation warning concerns the broader region. That distinction matters: the accounts do not present a single measure covering identical economies and conditions.
Kanda said the ADB’s next annual meeting, scheduled for May next year in Nagoya, offers an opportunity to promote reforms and strengthen resilience through regional cooperation. The reports identify that as his stated agenda, while the immediate outlook remains the bank’s projection of slower growth and his warning that inflation could worsen.
Why it matters
- Emerging Asia-Pacific economies face a projected growth slowdown from 5.5% in 2025 to 5.0% in 2026, while Kanda warns inflation could persist or worsen.
- Asian countries’ reliance on Middle Eastern crude oil and natural gas is the stated context for the ADB’s $5.6 billion in financial support.
- Developing nations with large dollar-denominated debt face higher repayment burdens as long-term interest rates rise in developed economies.
- Kanda identified energy prices, El Niño and climate-linked natural disasters as risks, but the reports provide no separate cost estimates for these pressures.
What to watch next
- Whether the ADB’s projected 5.0% growth for emerging Asia-Pacific economies in 2026 changes.
- Whether inflation in the Asia-Pacific persists or worsens, as Kanda warned.
- How the ADB’s reported $5.6 billion in financial support is directed, especially given the stated reliance on Middle Eastern oil and gas supplies.
- Whether Kanda advances reforms or regional resilience cooperation at the ADB annual meeting scheduled for May next year in Nagoya.
How it's being covered
Coverage analysisShow details3 source articles · 3 unique outlets · 2 distinct reportsCoverage mix: Center Only· 3 CenterWhere the outlets are based: Asia 67% · Europe 33%
- Coverage is currently concentrated among Center-rated outlets (3 of 3 rated sources); comparatively few Left or Right-rated outlets have published on the event.
One source is from a wire service (AP, Reuters, AFP or Bloomberg), whose reporting other outlets often republish.
How outlets' accounts compare
1 framing difference · 1 uncorroborated claim · 2 information gaps- The Japan Times details Kanda’s cited inflation risks—energy prices, El Niño and climate-linked disasters—and his comments on dollar-denominated debt; Nation Thailand foregrounds borrowing costs and the growth forecast.
- Kanda described the global economy as facing “unprecedented uncertainty.”
- The reports do not identify how the ADB’s $5.6 billion in support was distributed or which countries or programs received it.
- The reports do not quantify the contribution of energy prices, El Niño, climate-linked disasters or higher borrowing costs to inflation or growth.
Timeline
Developments from this story's sources, dated background we compiled and fact-checked, and our earlier coverage. Each row says which.- The Asian Development Bank was established on 19 December 1966 to promote economic development in Asia and the Pacific.Background · from our historical context
- Dollar-denominated borrowing can make repayment more expensive when US interest rates rise: the US Federal Reserve began raising its policy rate in March 2022 after pandemic-era rates near zero.Background · from our historical context
- In March 2026, the United States and Israel launched coordinated strikes against Iran, including attacks on power plants, air defenses and military infrastructure.Background · from our historical context
How we got here
In March 2026, the United States and Israel launched coordinated strikes against Iran, including attacks on power plants, air defenses and military infrastructure. That escalation added a new risk to energy-importing Asian economies already exposed to movements in oil and gas prices.
The Asian Development Bank was established on 19 December 1966 to promote economic development in Asia and the Pacific. The 1997–98 Asian financial crisis exposed the region’s vulnerability to capital outflows and currency pressures; the crisis also led regional governments to develop the Chiang Mai Initiative, signed in May 2000, as a framework for currency-swap support.
Original sources
3 articles from 3 outletsEvery story links to the reporting it was built from. How we choose sources
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