Key facts
- International organizations face challenges from geopolitical uncertainties and technological innovation, including AI.
- ADB President Masato Kanda called for institutions like the ADB and WTO to "anchor" the international order.
- Kanda attended the G7 Finance Ministers and Central Bank Governors’ Meeting in Paris.
- ADB has downgraded its growth outlook for developing Asia and the Pacific and raised its inflation forecast.
- ADB is providing financial support to countries affected by the Middle East conflict.
Asian Development Bank (ADB) President Masato Kanda stated that international organizations are facing significant challenges due to geopolitical uncertainties and rapid technological innovation, including artificial intelligence. He emphasized that institutions like the ADB and the World Trade Organization (WTO) need to "anchor" the international order during these turbulent times.
Kanda's remarks come as the ADB has downgraded its growth outlook for developing Asia and the Pacific to 4.7% for 2026, down from a previous forecast of 5.4% for 2025, and raised its inflation projection to 5.2% from 3.0% last year. He noted that under a more severe scenario involving a prolonged Middle East conflict, growth could decelerate further to 4.2% with inflation rising to 7.4%.
During his participation in the G7 Finance Ministers and Central Bank Governors’ Meeting in Paris, Kanda reaffirmed the ADB's commitment to supporting countries affected by the Middle East conflict. He highlighted the coordinated efforts among multilateral development banks (MDBs) to mobilize private capital, reduce duplication, and align their actions to deliver development impact. The ADB is responding to the conflict's economic fallout through fast-disbursing budget support, countercyclical financing, and trade finance, aiming to stabilize economies and maintain essential services.
Recent engagements by President Kanda include meetings with Vietnamese leadership to discuss a $5 billion to $6 billion project pipeline and support for regional power connections. He also met with Bangladesh's Prime Minister and Finance Minister, highlighting expanded ADB support, including $5 billion for an integrated growth initiative and $1.42 billion in loan agreements, with $250 million allocated to address economic impacts from the Middle East conflict.