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Asia's Growth Hotspots Prompt Us To Upgrade GDP Forecasts

Seeking Alpha
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Asia’s 2026 GDP growth forecasts have been upgraded, driven by robust performance in India, Singapore, and Australia, which outpaced regional peers in late 2025. The removal of IEEPA tariffs provided additional economic relief, boosting trade and investment flows across key Asian markets. Rising oil prices and a stronger US dollar introduce downside risks, straining trade balances and delaying monetary easing in Indonesia and India until late 2026. Higher global oil costs—even without supply shocks—are fueling inflation, complicating central banks’ efforts to cut interest rates. Strong high-frequency data from late 2025 reinforces optimism, but external pressures like currency volatility and energy costs threaten sustained recovery.
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ING Economic and Financial Analysis5.22K FollowersFollow5ShareSavePlay(6min)CommentsSummaryAsia’s outlook is underpinned by strong growth in India, Singapore, and Australia, further supported by relief from the removal of IEEPA tariffs.But higher oil prices and a firmer US dollar pose meaningful downside risks, delaying the easing cycle and pushing rate cuts in Indonesia and India further into 2026.Even without a physical supply disruption, higher global oil prices worsen trade balances and add to inflation pressures. fengdr/iStock via Getty Images By Deepali Bhargava, Regional Head of Research, Asia-Pacific Recent growth performance has been strong There are pockets of real strength across the region. India, Singapore, and Australia continue to stand out, and fourth quarter 2025 GDP prints and high‑frequencyThis article was written byING Economic and Financial Analysis5.22K FollowersFollowFrom Trump to trade, FX to Brexit, ING’s global economists have it covered. Go to ING.com/THINK to stay a step ahead. We’re sorry we can’t reply to individuals' comments.Content disclaimer: The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument.This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. For our full disclaimer please click here.

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