The International Monetary Fund (IMF) has adjusted its economic growth forecasts for key Southeast Asian countries, attributing the revision to increased investments in artificial intelligence (AI) and technology infrastructure. According to the latest World Economic Outlook report, the IMF now anticipates that the economies of Indonesia, Malaysia, the Philippines, Singapore, and Thailand will collectively grow by 4.4% in 2026, up from an earlier projection of 4.1%.
This upward revision reflects the burgeoning investment in data centers and infrastructure that support the global AI boom. The IMF highlighted that these technology-related investments are boosting demand and exports in countries linked to high-tech supply chains, thus supporting global economic growth.
On a global scale, the IMF has adjusted its 2026 economic growth forecast to 3.1%, a slight increase from its previous estimate of 3% released in July. However, global growth projections for 2027 remain at 3.4%, slightly less than the 3.5% recorded in 2025.
Meanwhile, the IMF has revised China’s economic growth projection for 2026 slightly downward to 4.5%, a decrease from the 5% growth recorded in 2025. The report cites higher global oil prices and prolonged economic uncertainty as factors impacting China’s economic outlook.
Inflation is expected to rise globally, with the IMF projecting an increase in global headline inflation to 4.7% in 2026, up from 4.1% in 2025, largely driven by higher energy and food prices. Inflation is anticipated to ease back to 4.1% in 2027.
The IMF also cautioned that ongoing conflict in the Middle East, trade tensions, and financial market volatility could pose risks to the global economic outlook. It advised that government support measures to counter increased energy and food costs should be temporary and targeted to prevent undermining public finances.