The IMF forecasts Asia will slow to 4.8% growth in 2026 and 4.4% in 2027, below 2025’s 5.0%, and warned that an energy shock from the Iran war, a potential correction in the AI boom and spillovers from rising global bond yields amplify downside risks. The Fund said US monetary policy uncertainty could keep Asian financial markets volatile and noted exchange-rate and capital-flow volatility have risen since the energy shock, with some emerging markets under local-currency depreciation pressure. T

The IMF forecasts Asia will slow to 4.8% growth in 2026 and 4.4% in 2027, below 2025’s 5.0%, and warned that an energy shock from the Iran war, a potential correction in the AI boom and spillovers from rising global bond yields amplify downside risks. The Fund said US monetary policy uncertainty could keep Asian financial markets volatile and noted exchange-rate and capital-flow volatility have risen since the energy shock, with some emerging markets under local-currency depreciation pressure. The upward revision versus April mainly reflects a stronger AI-linked boost to developed Asia, where growth is seen rising to 3.2% in 2026 from 2.5% last year; emerging Asia, while still the growth engine, may slow to 5.1% in 2026 from 5.6% in 2025.