IMF Sees Asia’s Growth Slowing in 2027 as Energy Shock and Rising Bond Yields Raise Risks
The IMF forecasts Asia-Pacific economic growth will slow to 4.4% in 2027, down from 4.8% in 2026 and 5% in 2025, citing risks from an energy shock, rising global bond yields, and uncertainty over AI demand
The International Monetary Fund (IMF) predicts that Asia-Pacific economic growth will decelerate to 4.4% in 2027, a decline from the 4.8% growth seen in 2026 and the 5% growth in 2025. This forecast is influenced by concerns over an energy crisis, escalating global bond yields, and uncertainty surrounding artificial intelligence (AI) demand.
Although the 2026-2027 projections have improved from the April estimates due to increased AI activity in advanced economies, the IMF has cautioned that there are still significant downside risks. These risks include the potential for a prolonged stalemate in the Middle East conflict, which could maintain elevated commodity prices and deplete oil reserves, as well as the risk of financial and commodity market pressures weakening momentum. The IMF emphasizes that the outlook for the region remains vulnerable to downside risks.
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