Asia growth forecasts slashed as Iran war and tariffs threaten supply chains

Asia-Pacific economies are likely to suffer a slowdown in growth this year, as rising costs linked to the Iran" class="entity-link entity-event" data-entity-id="38678" data-entity-type="event">US-Israel war on Iran combine with lingering trade uncertainty to threaten global trade flows, according to forecasts by top international organisations.The predictions come despite China showing resilience in the first quarter by posting better-than-expected growth of 5 per cent and finance minister Lan Foan last week stressing that the world’s second-largest economy would remain an engine for global growth.The International Monetary Fund (IMF) projected in its World Economic Outlook report on Tuesday that growth in emerging and developing Asia would reach 4.9 per cent this year, down from 5.5 per cent in 2025. It expects growth to ease in China as well.“The global economy has, to date, withstood a series of shocks, yet another one – this time a military conflict engulfing the Middle East since the end of February – is testing this resilience,” the report said.