The Asian Development Bank has projected that the region's economy will expand by 4.9% in 2026, signaling a modest improvement in growth momentum despite a challenging external environment.
The lender cautioned that persistent headwinds continue to weigh on the outlook, requiring careful navigation by policymakers and businesses alike.
A key bright spot in the forecast is the robust demand for semiconductors, fueled by sustained investment in artificial intelligence infrastructure.
This technology-driven demand has helped offset the drag from higher energy prices, particularly in advanced Asian economies where industrial activity remains sensitive to input costs.
The resilience of the tech sector is providing a crucial buffer against broader macroeconomic pressures.
However, the ADB's warning underscores that the recovery is uneven and fragile.