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with inflows from the Middle East exceeding 5 percent of gross domestic product (GDP) in some cases.

The ADB brief said remittances from Middle Eastern economies accounted for 8.1 percent of Nepal’s GDP, 5.6 percent of Pakistan’s GDP, and 2.9 percent of Sri Lanka’s GDP in 2021.

For Bangladesh, remittances accounted for 2.8 percent of its GDP, according to estimates from five years ago.

The ADB also warned that higher energy prices could fuel inflation across the region, with the largest impact in South Asian economies.

The conflict affects economies in Asia and the Pacific through higher energy prices, supply chain and trade disruptions, and tighter financial conditions. Tourism and remittances could also be impacted, the Manila-based multilateral lender said.

“Higher oil and gas prices feed into energy and producer prices, with pass-through also determined by each economy’s dependence on imported energy and the degree of domestic energy price regulation. Because the shocks are assumed to be temporary, inflation moderates in 2027 as energy prices normalise,” it said.