SINGAPORE (Xinhua): Economic growth in the Asean+3 region, comprising Asean member states plus China, Japan and South Korea, is expected to moderate to 4 per cent in 2026 and 2027, from 4.3 per cent in 2025, the Singapore-based ASEAN+3 Macroeconomic Research Office (AMRO) said Monday.
The AMRO cited weaker external demand as a key factor, as higher global and sectoral tariffs implemented by the United States begin to take effect.
Broad-based tariffs are expected to curb US demand, directly weighing on regional exports and indirectly slowing global trade.
Global trade growth is also expected to ease in 2026 after tariff-induced front-loading in 2025. Businesses' adaptation to tariffs, coupled with continued supply chain reconfiguration amid policy uncertainty, is likely to reduce trade efficiency and raise production costs.
Investment in technology, however, offers some offset, with export demand for semiconductors and electronics supported by ongoing artificial intelligence and data centre projects, albeit at a slower pace than in 2025.
"Domestic demand is expected to remain the anchor of growth, with investment momentum continuing into 2026 and healthy labour market conditions underpinning private consumption," the AMRO added. -- Xinhua
