IMF Projects Asia Economic Growth to Moderate Through 2027

The International Monetary Fund projects that economic growth in Asia will moderate to 4.8% in 2026 and 4.4% in 2027, slowing from a 5.0% expansion in 2025. In a report issued during its annual meetings in Bangkok, the organization warned that risks to this outlook remain tilted to the downside.

Growth pressures stem from energy shocks caused by the war in Iran, potential corrections in the artificial intelligence boom, and spillovers from rising global bond yields. While the AI boom is expected to accelerate growth in advanced Asian economies to 3.2% in 2026, emerging Asia's growth is projected to moderate to 5.1% as a result of higher energy prices.

The organization cautioned that tightening US monetary policy and fiscal pressures in advanced economies could increase volatility in Asian financial markets and raise debt-servicing costs. The IMF urged Asian central banks to prioritize price stability and advised governments to implement targeted, temporary fiscal policies instead of blanket fuel subsidies.