The International Monetary Fund has raised its Asia-Pacific growth forecast for 2026 to 4.8% from 4.4%, citing resilient trade, strong technology demand, and economies' adaptation to energy shocks, according to a blog on Thursday.
The IMF also raised its 2027 forecast to 4.4% from 4.2%. Despite a slowdown from 5% in 2025, the region is expected to contribute two-thirds of global growth.
India, South Korea and parts of Southeast Asia received the largest upgrades, while low-income and Pacific island economies face pressure from higher fuel prices.
The IMF warned that sustaining growth will require managing fiscal pressures and adapting to AI-driven changes in employment.
The region needs to create nearly 150 million jobs over the next decade as manufacturing becomes more capital-intensive.
