World Bank ups East Asia growth forecast

The World Bank has raised its growth forecast for the economies of East Asia and the Pacific in 2026 to 4.5%, supported by the global surge in artificial intelligence that has boosted exports from the region's industrial and technological sectors. Vietnam recorded the largest upward revision, with a growth rate of 7.4%, thanks to jumps in the production and export of AI products, as AI-related goods accounted for more than half of the export growth in many economies. However, the report warned that excessive reliance on the AI sector could expose Asian economies to significant disruptions if global spending were to decline, especially since the level of capital expenditure on technology in the United States approaches the dot-com bubble levels of 2000, and private financing is playing an increasingly important role, with risks of market downturns in the event of a recession.

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