Paris, May 19 (AseanAll) — Asian Development Bank (ADB) President Masato Kanda told G7 finance ministers and central bank governors in Paris that multilateral development banks (MDBs) are moving together to help countries manage the economic fallout from the Middle East conflict, combining financing, policy support, private sector instruments, and technical expertise to protect vulnerable economies.
“Development setbacks are hard to reverse,” said Mr. Kanda, who addressed the meeting as chair of the Multilateral Development Banks Heads Group. “Early, coordinated action can help countries contain the damage and protect hard-won gains.”
Mr. Kanda’s remarks followed the 18 May Joint Statement by Seven Multilateral Development Banks Pledging Support to Address Impacts of the Middle East Conflict, in which the institutions said they were responding to requests from countries and clients facing impacts from the conflict. In the statement, the MDBs said they are “uniquely positioned” to support members to manage shocks, preserve development gains, and strengthen long-term resilience. They said the response aims to provide immediate relief for vulnerable populations, keep essential services running, and support the foundations of more resilient economies.
ADB has downgraded its growth outlook for developing Asia and the Pacific and raised its inflation forecast. Regional economic growth is expected to decelerate to 4.7%, from 5.4% in 2025, while inflation is projected to accelerate to 5.2%, from 3.0% last year. Under a downside scenario involving an even longer conflict, growth could decelerate to 4.2%, and inflation could rise to 7.4%.
Mr. Kanda said ADB is responding to the effects of the conflict through fast-disbursing budget support, countercyclical financing, finance for trade and supply chains, and rapid additional financing, alongside regular operations. This support will help members stabilize economies, maintain essential services, and safeguard the availability of energy and agricultural inputs.
Mr. Kanda also addressed the G7 session on International Partnerships as chair of the Multilateral Development Banks Heads Group, stating that MDBs are working together in a coordinated manner to mobilize private capital at scale, reduce duplication and increase coordination, and align around impact, from jobs and critical minerals value chains to water security. The Full Mutual Reliance Framework between ADB and the World Bank, the first arrangement of its kind between MDBs, is a concrete example of coordination that reduces duplication and lowers transaction costs for clients.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
