Asia-Pacific to lead global retail sales, weather Middle East conflict

Asia-Pacific is projected to lead global retail sales growth over the next five years. However, the ongoing Middle East conflict is negatively impacting consumer confidence, according to business analysts. Anand Ramanathan of Deloitte Asia-Pacific stated that the war is likely to continue affecting consumer and business sentiment due to increased energy prices and supply chain disruptions. He also noted that rising borrowing costs and tightening financial conditions are reducing the spending capacity of consumers and businesses, which can dampen demand for discretionary retail items, even in rapidly growing regions like Asia-Pacific.