Asian Development Bank (ADB) President Masato Kanda told G7 finance ministers and central bank governors in Paris on 19 May 2026 that multilateral development banks (MDBs) are moving together to help countries manage the economic fallout from the Middle East conflict, according to a press release by ADB. Kanda spoke in his capacity as chair of the Multilateral Development Banks Heads Group. He said the institutions are combining financing, policy support, private sector instruments, and technical expertise to protect vulnerable economies. The intervention follows growing concern about spillover effects from the conflict on inflation, food security, and trade. The thesis: coordinated MDB action aims to contain damage and safeguard development gains.
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 that statement, the institutions said they were responding to requests from countries and clients affected by the conflict. The MDBs described themselves as “uniquely positioned” to help members manage shocks, preserve development gains, and strengthen long-term resilience. They stated that the response aims to provide immediate relief for vulnerable populations and keep essential services running. It also seeks to support the foundations of more resilient economies.
ADB has downgraded its growth outlook for developing Asia and the Pacific while raising its inflation forecast. Regional economic growth is expected to decelerate to 4.7%, from 5.4% in 2025. Inflation is projected to accelerate to 5.2%, from 3.0% last year. Under a downside scenario involving a longer conflict, growth could decelerate to 4.2%. In that scenario, inflation could rise to 7.4%.
“Development setbacks are hard to reverse,” Kanda said, adding that “early, coordinated action can help countries contain the damage and protect hard-won gains.”
He said ADB is responding through fast-disbursing budget support, countercyclical financing, finance for trade and supply chains, and rapid additional financing, alongside regular operations. The measures will help members stabilize economies and maintain essential services. They will also safeguard the availability of energy and agricultural inputs. Kanda framed the response as part of a broader, coordinated MDB effort.
Addressing the G7 session on International Partnerships, Kanda said MDBs are working together to mobilize private capital at scale, reduce duplication, and increase coordination. He said they are aligning around impact, from jobs and critical minerals value chains to water security. The Full Mutual Reliance Framework between ADB and the World Bank was cited as a concrete example. It is the first arrangement of its kind between MDBs and is designed to reduce duplication and lower transaction costs for clients. ADB, founded in 1966, is owned by 69 members, 50 of which are from the region.
