IMF projects Asia’s growth to dip to 4.4% by 2027 amid energy, conflict and AI risks

The International Monetary Fund says Asia’s annual economic growth could fall to 4.4% by 2027. It points to sharp energy price shocks and the ongoing Middle East conflict as primary drags on the region’s outlook. A correction in the artificial‑intelligence market adds another layer of uncertainty, while rising bond yields threaten investment flows. The Fund warns that downside risks remain dominant and could further curb growth. It urges central banks across the region to keep price stability as the top priority. At the same time, governments are asked to target fiscal support to the most vulnerable sectors, but without letting inflation or debt burdens spiral.

Context

The IMF’s forecast reflects a broader slowdown in global demand and higher financing costs, trends that have already pressed many Asian economies in recent quarters. Keeping inflation in check while supporting growth is a tight balancing act for policymakers.