On the economic front, the regional economies will certainly have to endure slower growth, higher inflation and downward pressures on their currencies in the coming year or so. Beyond those near-term difficulties, though, the economic changes unleashed by today’s war may not be all bad for Asia — the countries that are nimble and imaginative will find many opportunities to advance their interests.
The war in Iran has reached the one-month mark, and there are tentative signs of a negotiated end. Whether it actually concludes or not, this is a good moment to look beyond the confusion of daily headlines and consider its broader implications.
We see it as a watershed event that will reshape how our region operates. Most significantly, it will create a more challenging geopolitical environment to which smaller and less powerful countries must adapt.
