Bangkok – Inflation in the Asia-Pacific region may persist and worsen amid global uncertainty, Asian Development Bank (ADB) President Masato Kanda has warned. Inflation in the Asia-Pacific region may “continue and even deteriorate further,” Kanda said, citing risk factors such as soaring energy prices stemming from turmoil in the Middle East, the worsening El Nino phenomenon and the increasing severity of natural disasters linked to climate change. He is visiting Bangkok to attend ongoing 2026 annual meetings of the International Monetary Fund and the World Bank Group.
According to the ADB’s economic outlook, growth in emerging economies in the Asia-Pacific region is projected to slow to 5.0% in 2026 from 5.5% in 2025. Given Asian countries’ heavy reliance on the Middle East for crude oil and natural gas supplies, the ADB has provided $5.6 billion in financial support. Rising long-term interest rates, mainly in developed economies, have increased repayment burdens for developing nations with large amounts of dollar-denominated debt, Kanda said.
The ADB’s next annual meeting will be held in May next year in Nagoya. That gathering “will be a very important opportunity for international cooperation at a time when the world is turning inward and societies within countries are becoming more divided,” Kanda said. He expressed hope that the meeting will encourage more Japanese companies to expand into Asia.
On Japan’s economic and fiscal management, Kanda said that maintaining a sound macroeconomic policy is extremely effective for any country. He added that such a policy is the “best weapon” against speculators. He also said that a “timely interest rate adjustment” would help protect the Japanese economy.
Yen of the Reiwa Era” for overseeing massive yen-buying foreign exchange interventions while serving as Japan’s vice finance minister for international affairs, Kanda assumed the post of ADB president in February 2025 after stepping down as the country’s top finance diplomat. He will begin his second term as head of the Manila-based multilateral development bank in November this year.
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