ASEAN+3 Growth Predicted to Slow in 2026-2027

Singapore (ANTARA) - Economic growth in the ASEAN Plus Three (ASEAN+3) region, which includes ASEAN member countries plus China, Japan, and South Korea, is projected to slow to 4% in 2026 and 2027 from the previous 4.3% in 2025.

This was stated by the ASEAN+3 Macroeconomic Research Office (AMRO), based in Singapore, on Monday (6/4).

AMRO noted that weakening external demand is the main factor, as global and sectoral tariff increases imposed by the United States (US) begin to take effect.

The broad implementation of tariffs is expected to hinder US demand, which will directly burden regional exports and indirectly slow global trade.

Global trade growth is also projected to slow in 2026 following stockpiling due to tariffs in 2025.

Business adaptation to tariffs, combined with ongoing supply chain reconfiguration amid policy uncertainty, is likely to reduce trade efficiency and increase production costs.

However, investments in the technology sector provide a counterbalance, where export demand for semiconductors and electronic products is supported by ongoing artificial intelligence (AI) projects and data centres, albeit at a slower pace than in 2025.

“Domestic demand is expected to remain the anchor for growth, with sustained investment momentum through 2026 and healthy labour market conditions supporting private consumption,” AMRO added.