ADB President Kanda warns of rising inflation in Asia — The Japan Times
In Bangkok, Thailand, Asian Development Bank (ADB) President Masato Kanda said that inflation in the Asia-Pacific region may persist and even intensify amid global uncertainty. Kanda, who arrived in Bangkok to attend the annual meetings of the International Monetary Fund and the World Bank Group, said this in an interview, The Japan Times reports.
Risks to prices
According to Kanda, the global economy is facing unprecedented uncertainty. Among the factors that could contribute to accelerating inflation in the region, he cited a sharp rise in energy prices due to the situation in the Middle East, the intensification of El Niño, and more severe consequences of natural disasters linked to climate change.
The ADB's economic outlook states that growth in developing economies in the Asia-Pacific region will slow to 5% in 2026, compared with 5.5% in 2025. Kanda also noted that Asian countries are heavily dependent on supplies of oil and natural gas from the Middle East.
More current news is available on the UA.News Telegram channel Telegram.
Debt and energy security
Kanda said that higher long-term interest rates, primarily in developed countries, have increased the burden of debt payments for developing countries with substantial liabilities in U.S. dollars. According to him, these countries also face inflation risks from higher energy and transportation costs, as well as concerns about the sustainability of public finances.
Against the backdrop of Asian countries' dependence on Middle Eastern oil and gas supplies, the ADB has provided $5.6 billion in financial support. Kanda called for using world leaders' attention to energy security to carry out reforms and strengthen resilience through regional cooperation.
Next meeting in Nagoya
The next ADB annual meeting will take place in May next year in Nagoya, Japan. Kanda called it an important opportunity for international cooperation at a time when the world is increasingly turning inward and societies within countries are becoming more divided. He also expressed hope that the meeting would encourage more Japanese companies to expand their operations in Asia.
