Asia's Economic Resilience Is Being Tested by the Energy Shock
you are currently viewing:Asia's Economic Resilience Is Being Tested by the Energy ShockApril 16, 2026-The region can best cope by protecting vulnerable people, letting prices adjust, anchoring inflation expectations, and accelerating structural reforms Now, the war in the Middle East and the ensuing energy supply shock are raising inflation, weakening external balances, and narrowing policy options, underscoring the region’s dependence on imported oil and gas. Even so, we project Asia to remain the main driver of global growth. The 5 percent expansion last year will moderate to 4.4 percent and 4.2 percent this year and next, according to the reference forecast in the latest World Economic Outlook that assumes the energy shock proves transient. We expect China and India to contribute 70 percent of the region's growth. Source: imf.org |
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May 15, 2026-Hong Kong SAR's economy has continued to recover, with growth in 2025 stronger than expected, supported by robust technology-related exports, improving private demand, and a rebound in financial market activity. The territory has also reinforced its position as a global financial center and super-connector between the Chinese mainland and the rest of the world.