ASEAN+3 Maintains Resilience Amid Global Shocks as AMRO Releases Economic Outlook
The ASEAN+3 region has demonstrated resilience amid global challenges, including the Middle East energy shock and rising U.S. interest rates, according to a report by the Asian Development Bank's Asian Development Fund (AMRO). The ASEAN+3 Financial Stability Report 2026 and Regional Economic Outlook October Update project stable growth of 4.1% for both 2026 and 2027, with inflation expected at 1.6% in 2026 and rising slightly to 1.7% the following year due to energy costs and El Niño effects. Despite external pressures, regional financial systems remain robust, supported by strong foreign exchange reserves and well-capitalized banking sectors. However, AMRO warns of growing interconnected risks from AI-related asset repricing, digital finance vulnerabilities, and potential disruptions in global markets or the Middle East. The report emphasizes that stronger policy frameworks, deeper local currency markets, and enhanced regional integration are essential to maintaining stability. AMRO Chief Economist Dong He highlighted the uneven domestic demand across ASEAN+3 economies but noted that AI investment is supporting broader economic activity.
Topics: AI investment energy shock financial stability growth projections inflation