Report: Asia's economy projected to grow 4.5 percent in 2026

Boao (ANTARA) - Asia remains the world’s primary growth engine, with its economy expected to grow by 4.5 percent in 2026, according to a report released by the Boao Forum for Asia (BFA) on Tuesday (24/3). Asia’s share of global gross domestic product (GDP) is projected to continue increasing, rising from 49.2 percent in 2025 to 49.7 percent in 2026 based on purchasing power parity, according to the report titled “Asian Economic Outlook and Integration Progress Annual Report 2026”. The foundations of Asia’s trade integration continue to strengthen, the report states, citing data that intra-regional trade dependence rose slightly from 56.3 percent in 2023 to 57.2 percent in 2024, as major economies in the region further reinforce their trade ties with one another. “China and ASEAN continue to stand out as the two ‘pillars of stability’ in this region,” the report states. Asia-Pacific economies are increasingly shifting from individual integration into global value chains towards a model of shared regional integration, with many of them advancing to higher levels in value chains thanks to intra-regional support, the report continues. The region also continues to be the world’s primary destination for foreign direct investment (FDI), recognised for its resilience, growth potential, and long-term appeal to global investors, with China and ASEAN leading as the most attractive destinations, the report explains. In the field of technology, the report mentions that the global centre for artificial intelligence (AI) development is gradually shifting from Europe and the United States (US) towards Asia. “By leveraging a large digital population, diverse application ecosystems, and coherent policy frameworks, Asian economies are rapidly evolving from mere AI followers to pioneers,” the report states. Established in 2001, the BFA is a non-governmental and non-profit international organisation committed to promoting regional economic integration and bringing Asian countries closer to their development goals. Taking place from 24 to 27 March, this year’s conference carries the theme “Shaping a Shared Future: New Dynamics, New Opportunities, New Cooperation”.