In the July 2026 quarterly update of the AREO, AMRO projects the ASEAN+3 region to grow by 4.1 percent in 2026, up from its June forecast of 4.0 percent, before moderating slightly to 4.0 percent in 2027. Headline inflation is projected at 1.6 percent in 2026, down from 1.8 percent previously, reflecting lower global commodity price assumptions.
The upgraded outlook reflects sustained momentum in the region’s technology sector, particularly robust demand for semiconductors and other AI-related products, alongside a more favorable global commodity price outlook. Firm household spending, resilient investment, and robust semiconductor and electronics exports are expected to continue driving growth. Energy and industrial input supply disruptions proved less severe than initially feared, with manufacturing activity continuing to expand.
