Report Forecasts Resilient Asia-Pacific Industry in 2026, Powered by China and AI

In a report released on January 8, 2026, Oxford Economics forecasts resilient industrial growth for the Asia-Pacific region in 2026, with expansion moderating to 4.3% from 5.1% in 2025. The analysis identifies China's robust manufacturing sector, driven by strong exports and policy support, as a key driver, expecting it to boost China's industrial output growth to 5% and further deepen regional production networks.

Concurrently, the artificial intelligence investment boom is highlighted as a critical growth engine, directly benefiting leading chip producers like Taiwan (China) and South Korea, while creating positive spillover effects for economies like Malaysia and Japan within the supply chain. These forces are expected to keep Asia-Pacific at the forefront of global economic growth, albeit with increasing divergence in performance across economies and sectors.