HONG KONG, Oct 15 (ETN News) The International Monetary Fund (IMF) forecasts that economic growth in the Asia-Pacific region will slow this year and next, warning that rising energy prices and a potential cooling of the artificial intelligence (AI) boom could test the region's economic resilience.
In its October report 'Regional Economic Outlook: Asia and the Pacific', the IMF said it expects the Asia-Pacific region to grow by 4.8% in 2026, lower than last year's 5%, but higher than the 4.4% forecast the IMF projected in April. Growth will further slow to 4.4% by 2027.
The IMF raised growth forecasts for most advanced economies while downgrading projections for some countries facing higher inflation and not benefiting similarly from technology demand.
The forecast revisions highlight how strong demand for semiconductors, data centers, and related technology products has helped some Asian economies withstand mounting economic pressures. However, the IMF noted that these benefits are uneven, concentrated in economies deeply integrated into global technology supply chains, while economies more vulnerable to energy price shocks and less integrated into global supply chains face greater risks. (rc)
In its October report 'Regional Economic Outlook: Asia and the Pacific', the IMF said it expects the Asia-Pacific region to grow by 4.8% in 2026, lower than last year's 5%, but higher than the 4.4% forecast the IMF projected in April. Growth will further slow to 4.4% by 2027.
The IMF raised growth forecasts for most advanced economies while downgrading projections for some countries facing higher inflation and not benefiting similarly from technology demand.
The forecast revisions highlight how strong demand for semiconductors, data centers, and related technology products has helped some Asian economies withstand mounting economic pressures. However, the IMF noted that these benefits are uneven, concentrated in economies deeply integrated into global technology supply chains, while economies more vulnerable to energy price shocks and less integrated into global supply chains face greater risks. (rc)