ASEAN+3 Growth Forecast Raised on Stronger AI Demand
AMRO has raised its growth forecast for the ASEAN+3 region to 4.1 percent for 2026, driven by robust demand in the technology sector, particularly for AI-related products.
SINGAPORE – AMRO, an international organization focused on macroeconomic resilience in the ASEAN+3 region, has increased its economic growth forecast for the region to 4.1 percent in 2026, a slight upward revision from its previous projection. The forecast for 2027 anticipates a modest moderation to 4.0 percent.
The upgraded outlook is attributed to sustained momentum in the region's technology sector, with significant demand for semiconductors and other AI-related products. A more favorable global commodity price outlook also contributes to the revised forecast. Growth is expected to be further supported by firm household spending, resilient investment, and robust exports of electronics.
AMRO Chief Economist Dong He noted the region's resilience, citing strong domestic demand and its integral role in global AI supply chains. However, he cautioned that geopolitical risks, such as potential escalations in the Middle East, coupled with elevated energy and input costs, continue to pose risks to inflation and industrial activity.
While headline inflation is projected to moderate, AMRO highlighted that the overall outlook remains subject to considerable uncertainty. A significant slowdown in global technology investment, particularly linked to AI, could notably impact regional growth, underscoring the need for continued vigilance and flexible macroeconomic policies.