The World Bank raises its forecast for growth in East Asia and the Pacific in 2026 to 4.5 percent, from 4.2 percent previously. Growth is then expected to slow to 4.4 percent in 2027 and 4.3 percent in 2028.
The upswing is largely driven by AI-related exports, which accounted for more than half of export growth in most economies in the region. In Malaysia, the Philippines, Thailand and Vietnam, the share exceeded 70 percent.
The World Bank is also warning of concentration risks. A downturn in global AI investment could hit a key growth engine. AI-related investment accounts for around 6 percent of US GDP and has increased faster than during previous technology cycles.
