Asean+3 Growth Outlook Upgraded, AI Demand Key Driver

KUALA LUMPUR, July 27, 2026 – The Asean+3 region is projected to grow by 4.1% in 2026, slightly higher than the previous 4.0% forecast, before moderating to 4.0% in 2027, according to the Asean+3 Macroeconomic Research Office (AMRO).

In its July quarterly update, AMRO said headline inflation is expected at 1.6% in 2026, down from 1.8%, reflecting lower global commodity prices. The improved outlook is driven by strong momentum in the technology sector, particularly robust demand for semiconductors and AI-related products, alongside resilient household spending and investment.

AI Demand

Chief economist Dong He noted the region’s resilience, supported by domestic demand and its central role in global AI supply chains. Risks remain, however, with potential escalation of the Middle East conflict, rising energy costs, and weaker technology demand.

AMRO warned that even a moderate slowdown in global AI investment could cut growth to 2.5% in 2027, the weakest since the Asian Financial Crisis.

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