Kuala lumpur: The ASEAN+3 economy is expected to grow 4.0 percent in 2026, according to the ASEAN+3 Macroeconomic Research Office (AMRO). This projection marks a moderation from an estimated 4.3 percent growth in 2025.

According to BERNAMA News Agency, AMRO stated that inflation is estimated at 0.9 percent in 2025 and projected at 1.2 percent in 2026, both figures being below the region's long-run average. The growth updates reflect upward revisions of 0.2 percentage points for both years compared with the October 2025 ASEAN+3 Regional Economic Outlook update.

AMRO highlighted that the region's solid performance in 2025 was supported by less severe tariff outcomes than initially expected, resilient technology export growth, strong investment in ASEAN, and accommodative macroeconomic policies. AMRO chief economist Dong He noted the region's resilience in navigating global uncertainties.

Dong He emphasized that strong technology demand and robust foreign direct investment inflows into emerging sectors, such as advanced electronics, electric vehicles, and digital services, have cushioned growth despite ongoing tariff challenges. He also stressed the importance of maintaining policy readiness to respond to near-term shocks and diversifying growth drivers to strengthen resilience.

AMRO also mentioned that while risks are more balanced, uncertainty remains elevated, with key concerns including unpredictable United States trade policy, potential extensions of protectionist measures, and a slowdown in technology demand affecting regional exports. Other downside risks cited include slower growth in major economies and increased financial market volatility.

The ASEAN+3 grouping consists of the 10 ASEAN member states along with China, Japan, and South Korea.