ADB raises Southeast Asia growth forecast to 4.7% on AI boom

The Asian Development Bank lifted its 2026 growth forecast for developing Southeast Asia to 4.7% from 4.6%, and its 2027 projection to 4.9% from 4.8%, citing AI-linked investment and tech exports. Gains are uneven: Vietnam, Malaysia and Thailand were upgraded, while the Philippines, Cambodia, Myanmar and Brunei were downgraded. Inflation forecasts rose to 4.0% for 2026 and 3.3% for 2027.

• 2026 growth forecast raised to 4.7% from 4.6%; 2027 to 4.9% from 4.8%
• Vietnam, Malaysia and Thailand upgraded; Philippines and Cambodia downgraded
• Inflation forecast up to 4.0% for 2026 and 3.3% for 2027
• Risks include conflict escalation, El Nino and an AI equity selloff