The ASEAN+3 Macroeconomic Research Office (AMRO) is forecasting growth for the ASEAN+3 region in 2026 amid the renewed escalation in the Middle East.
This comes as an upward revision of its prior economic growth forecast, projecting the region, which includes includes the 11 Southeast Asian member-states, plus Japan, South Korea and China, and Hong Kong, to grow by 4.1%, up from the 4% forecast in June.
According to a report by the Philippine News Agency, AMRO head and lead economist Allen Ng said growth is revised upward to 4.1% in 2026, and maintained at 4% in 2027 as robust AI (artificial intelligence)-driven demand offset headwinds from the Middle East conflict, noting that ASEAN+3 currently accounts for about half of the world’s AI-related trade.
Growth forecasts were upgraded for Malaysia to 4.9% from 4.6%; Singapore, to 4.8% from 3.4%; and Thailand to2.4% , from 2.1%.
For 2027, AMRO revised upward the growth forecast of Singapore to 3.1% from 2.9%.
Further, AMRO said inflationary pressures remained broadly contained, as inflation across the region is forecast to average 1.6% in 2026 from the 1.8% projection in June due to the assumption of lower global commodity prices.
According to the report, AMRO said that the growth outlook remains subject to uncertainty, adding that risks stem from the evolving Middle East conflict and the durability of the AI-driven technology cycle.
