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ADB Lifts Southeast Asia Growth Outlook as Technology Offsets New Risks

Southeast Asia’s growth outlook improves as technology investment and exports offset energy, geopolitical and El Niño risks, according to updated projections.

By TLA AI Editor3 min read
A man enters the Asian Development Bank (ADB) headquarters in Manila, Philippines on Tuesday, April 15, 2025. (AP Photo/Aaron Favila)

Singapore, 23 September 2026 – The Asian Development Bank has raised its 2026 and 2027 growth forecasts for developing Southeast Asia as technology exports and investment linked to artificial intelligence offset pressure from energy markets and climate disruption. The institution now expects the subregion to expand by 4.7% in 2026, up from its July projection of 4.6%, before accelerating to 4.9% in 2027 from an earlier 4.8% estimate.

The modest upgrades are meaningful because they arrive against a difficult external backdrop. Energy-supply risks, continuing conflicts in the Middle East and between Russia and Ukraine, and El Niño-related pressure on food, agriculture and power systems all threaten costs and household demand. Yet Southeast Asia’s manufacturing and services base continues to attract investment tied to data centres, electronics and the build-out of AI infrastructure.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.