Upside Inflation Risks In Asia Outweigh Downside Growth Risks

2026-05-15 09:24:00 ET

By Deepali Bhargava , Regional Head of Research, Asia-Pacific

Better-than-expected growth despite energy headwinds

Growth across developed Asia continued to outperform in the first quarter and is expected to remain resilient in the second quarter, driven by factors extending beyond the technology export cycle. This resilience was helped by releasing strategic oil reserves to ease supply shortages, alongside government subsidies that took some pressure off households and businesses facing higher inflation. These factors have helped sustain activity despite elevated energy and geopolitical risks. Against this backdrop, we have upgraded our 2026 GDP growth forecasts for Taiwan and Korea....

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