The World Bank expects East Asia and the Pacific to grow by 4.5% in 2026, raising its forecast as demand for technology goods supports several economies in the region.
The projection, published on Tuesday 6 October, is higher than the 4.2% forecast the Bank gave in April. It is a forecast for the year, not a final measure of economic growth.
Technology exports lift some economies
In its latest regional update, the World Bank said production and exports of goods used in artificial intelligence have helped parts of the region grow faster than expected.
It raised its 2026 growth forecast for Vietnam to 7.4%, Malaysia to 5.1% and Thailand to 2.0%. Those are forecasts for individual economies, not figures for the region as a whole.
The gains are uneven. The Bank expects China to grow by 4.4%, with weak domestic demand and problems in its property sector continuing to weigh on activity. It puts growth in Pacific island countries at 2.2%, lower than previously expected, partly because of their exposure to high energy prices.
Export gains have not yet spread widely
The World Bank said supplying goods for the global rise in AI investment is benefiting some economies, but businesses across the region have been slower to adopt AI themselves. Costs, limited expertise, and concerns about security and privacy remain obstacles.
It called for better digital and energy infrastructure, business financing, and worker training so that more firms can use the technology. The Bank also said governments could support wider use through public services and clearer rules.
The higher forecast points to a stronger year than the Bank expected in April. It does not mean that every country or every worker is sharing equally in that growth.
