Asian Economy Presses Ahead with Resilience in 2026 as AI Dividends Spur Growth Divergence

In early 2026, forecasts indicate the Asian economy will remain a key pillar of global growth with notable resilience, yet internal divergence is set to widen. Developing Asia-Pacific economies are projected to grow by 4.6% in 2026. The primary growth engine is the artificial intelligence boom, which is reshaping regional dynamics. Economies integral to the global AI supply chain, such as South Korea, Singapore, and Malaysia, are poised to capture significant gains from strong semiconductor demand.

Meanwhile, India's growth is expected to remain robust at 6.5%, driven by solid domestic demand. Conversely, the full impact of U.S. tariff policies on non-tech exports is anticipated to weigh on some economies. Persistent inflation, debt issues, and geopolitical tensions continue to pose significant downside risks to the region's steady progress.