ECONOMIC growth in the Asia-Pacific region is expected to remain steady through 2026, supported by resilient consumption and sustained investment in technology-driven sectors, according to the latest Regional Trends Analysis of the Asia-Pacific Economic Cooperation (Apec).
Apec projects regional growth at 3.2 percent in 2025, easing to 3.1 percent in 2026 and 2.9 percent in 2027 as structural constraints, trade fragmentation and geopolitical risks intensify.
The updated outlook reflects stronger-than-expected momentum, with firm domestic demand, resilient trade and continued investment in artificial intelligence (AI) and other technology-driven industries.
“Near-term growth prospects have improved, supported by resilient demand, robust trade performance and strong AI-related investment,” said Carlos Kuriyama, director of the Apec Policy Support Unit, while warning that rising trade restrictions and policy uncertainty are clouding the medium-term outlook.
Merchandise trade remained resilient despite global fragmentation. In the first three quarters of 2025, exports rose 8.0 percent and imports 7.6 percent year on year, driven largely by demand from technology-intensive industries.
However, trade-restrictive measures surged in 2025, with new tariff and non-tariff actions outpacing trade-facilitating initiatives, raising costs and uncertainty for businesses.
“Firms have adapted quickly to changing trade conditions,” said Rhea C. Hernando of the Apec Policy Support Unit, “but the proliferation of trade restrictions is making these adjustments more costly and complex.”
Commercial services trade continued to expand, though more slowly than in 2024. Travel services growth moderated, partly offset by steady gains in transport and other services.
Inflation eased further in 2025 to an average of 2.4 percent from 2.6 percent in 2024, reflecting lower energy prices, moderating food costs and improved supply conditions.
“Easing inflation has given central banks greater policy space to support growth,” said Glacer Niño A. Vasquez, noting persistent risks from renewed trade barriers and geopolitical shocks.
Apec also flagged widening current-account imbalances and risks from concentrated AI-driven semiconductor investment, including supply-chain exposure and uncertain returns. It urged members to strengthen policy credibility, align AI investment with workforce upgrading and deepen regulatory coordination to sustain growth. / KOC