IMF forecasts Asia-Pacific regional growth of 4.8% in 2026 (5% in 2025) easing to 4.4% in 2027, a sizable upgrade from its 4.4% April estimate for 2026. Demand for chips, data centres and tech equipment has boosted exports and investment, while higher energy costs tied to the Middle East conflict pressure fuel importers. The IMF warned that a reversal in AI investment or tech valuations could hit growth hard, and Asian tech shares fell sharply on Thursday, with South Korea’s benchmark index down nearly 8% and Japan’s Nikkei about 5%. It expects China to grow 4.5% this year and 4% in 2027, and urged targeted support for vulnerable households rather than broad subsidies. Employer demand for jobs more exposed to AI has fallen 10%, and the IMF recommended tackling youth unemployment and skills mismatches.
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