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ASEAN Economic Forecast

ASEAN Economic Outlook

Regional GDP growth is forecast to slow to a three-year low in 2026, as the Iran energy crisis dampens household spending and U.S. tariffs plus global shipping disruptions keep a lid on merchandise exports. More positively, resilient tourism and the global AI upcycle should support the services sector and manufacturing, respectively.

ASEAN Inflation

In June, regional inflation remained among the highest in recent years amid spillovers from the Iran war. In 2026 as a whole, ASEAN inflation should rise to a three-year high due to weaker regional currencies, energy cost spikes and the El Niño weather event hurting agricultural output. A stronger-than-expected El Niño poses an upside risk to regional inflation.

This chart displays Economic Growth (Real GDP, ann. var. %) for ASEAN from 2010 to 2025.

2021 2022 2023 2024 2025
Current Account Balance (% of GDP) 2.0 2.2 2.8 3.1 3.5
Public Debt (% of GDP) 60.6 63.0 64.6 65.4 66.4
International Reserves (USD bn) 1,167 952 1,047 1,102 1,194
Merchandise Exports (USD bn) 1,773 2,045 1,903 2,028 2,266
Merchandise Trade Balance (USD bn) 222 262 263 253 279
Merchandise Imports (USD bn) 1,552 1,783 1,640 1,775 1,987
GDP per Capita (USD) 5,088 5,460 5,592 5,811 6,126
Economic Growth (Real GDP, ann. var. %) 3.9 5.7 4.0 5.0 4.8
Private Consumption (ann. var. %) 2.8 7.3 4.8 5.1 4.7
Inflation (CPI, ann. var. %, aop) 2.1 5.0 4.1 2.8 2.0
Policy Interest Rate (%, eop) 2.69 4.55 4.95 4.85 3.95
External Debt (% of GDP) 90.8 84.3 86.7 88.5 88.3
Fiscal Balance (% of GDP) -4.2 -2.7 -2.6 -2.7 -2.8
Fixed Investment (ann. var. %) 6.3 4.6 3.5 5.4 5.6
Industrial Production (ann. var. %) 6.0 5.6 -0.5 4.1 5.1
Unemployment (% of active population, aop) 4.8 4.0 3.5 3.3 3.2

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