ASEAN+3 Maintains Growth Forecast but Raises Inflation Projection Due to Middle East Conflict

The ASEAN+3 Macroeconomic Research Office (AMRO) has kept its growth projection for the ASEAN+3 region at 4.0 percent for 2026, consistent with its April forecast. However, AMRO has increased its inflation projection to 1.8 percent from 1.4 percent, attributing the revision to more prolonged disruptions from the ongoing Middle East conflict. Surging energy, commodity, and logistics costs are feeding into inflation and adding pressure on industrial supply chains, posing a risk to regional growth if the conflict persists. This highlights the continued global economic impact of geopolitical tensions.