APEC Lifts Growth Outlook as Trade Holds, AI Investment Surges

APEC has upgraded its growth outlook for the Asia-Pacific, projecting regional GDP (=PIB) to expand by around 3.2 percent in 2025 and remain steady in 2026. The improved forecast reflects resilient trade flows and a sharp rise in investment linked to artificial intelligence and advanced technologies.

Trade performance has held up better than expected, particularly in technology-driven sectors such as semiconductors, which continue to fuel exports and industrial activity. At the same time, AI-related capital spending is accelerating across several economies, reinforcing productivity gains and supporting domestic demand. However, officials cautioned that growing trade restrictions and policy uncertainty are increasing costs and creating new pressures for businesses operating across borders.

Inflation has eased in many economies, giving policymakers more flexibility to support growth. Even so, APEC warned that structural challenges, geopolitical tensions and rising fragmentation could weigh on the medium-term outlook. To maintain this trajectory, economies were encouraged to strengthen policy coordination, support workforce adaptation to AI-driven change and deepen regional cooperation in an increasingly complex global environment.

Reference: Asia-Pacific Economic Cooperation Policy Support Unit. (2026, February 10). APEC lifts growth outlook as trade holds, AI investment surges. Asia-Pacific Economic Cooperation. https://www.apec.org/press/news-releases/2026/apec-lifts-growth-outlook-as-trade-holds–ai-investment-surges