Asia to remain global growth engine in 2026 despite headwinds: UK think tank


  • World
  • Friday, 16 Jan 2026

LONDON, Jan. 15 (Xinhua) -- Asian economies are projected to grow strongly in 2026 and remain a central engine of global expansion, despite geopolitical and global economic headwinds, according to a report released by the British think-tank Asia House on Thursday.

In its Asia House Annual Outlook 2026, the report highlighted that China will continue to lead the world in renewables deployment in 2026, while across Asia, the drive for energy security is unlocking vast sums for nuclear, wind and solar projects.

Economic expansion is expected from the Philippines, Indonesia, and Malaysia, highlighting the region's economic durability, it added.

The Asia House report finds that strong domestic consumption, rising investment, deepening inter-regional trade, and rapid digitalisation are key drivers underpinning Asia's growth prospects, helping the region withstand geopolitical and global economic headwinds.

Michael Lawrence OBE, chief executive of Asia House, said the outlook confirms "Asia's economies are showing remarkable resilience and continuing to power ahead."

Report lead author Matilda Townsend added that several Asian economies are strengthening positions in strategic sectors such as semiconductor and AI production, affirming the region's sound economic fundamentals and favourable investment environment.

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