World Economy

Middle East Tensions Weigh on Asia-Pacific Economic Growth

Elevated crude oil prices stemming from escalating hostilities in the Middle East are dampening economic growth across Asia-Pacific. Sri Lanka's latest quarterly expansion fell short of analyst expectations, reflecting broader regional headwinds as energy costs remain elevated. India's trade picture offers a counterpoint, with August exports surging enough to unexpectedly narrow the country's trade deficit despite ongoing supply chain volatility tied to Middle Eastern instability. Energy markets remain a flashpoint, with forecasters projecting significant cost increases for consumers across multiple economies. Domestic freight and logistics markets show divergent momentum, with some carriers benefiting from pricing power while others face margin pressure as input costs remain elevated and demand uncertainty persists.