Asia's Economy Projected to Grow 4.5 Percent by 2026

Asia's economy is projected to grow by 4.5 percent by 2026, bolstered by trade integration and the significant roles of key players such as China and ASEAN, according to a recent report released by the Boao Forum for Asia.

The report, titled 'Asian Economic Outlook and Integration Progress Annual Report 2026', indicates that Asia's share of global GDP is expected to rise from 49.2 percent in 2025 to 49.7 percent in 2026, measured on a purchasing power parity basis.

The findings highlight a continued strengthening in the foundations of Asian trade integration, with intra-regional trade dependence increasing from 56.3 percent in 2023 to 57.2 percent in 2024.

As major economies in the region increasingly focus on fostering trade ties within Asia, China and ASEAN emerge as the region's twin 'anchors of stability', reinforcing their economic prominence.

The report emphasizes a shift in the Asia-Pacific economies away from individual integration into global value chains, indicating a trend towards shared regional integration.

This evolution is being driven by the collective advancement of these economies up the value chain, underpinned by strengthened regional cooperation.

The Asia-Pacific region continues to be the leading destination for foreign direct investment, showcasing its resilience and growth potential, particularly with China and ASEAN highlighted as the most attractive locations for global investors.

On the technology front, the report also notes a gradual shift of the global epicenter of artificial intelligence development from Europe and the United States towards Asia.

Asian economies are leveraging their large digital populations and diverse application ecosystems, enabling them to transition from being AI followers to frontrunners.

The Boao Forum for Asia, founded in 2001, is a non-governmental and non-profit organization dedicated to promoting regional economic integration and assisting Asian countries in achieving their development goals.

The ongoing conference, taking place from March 24 to 27, 2026, is themed 'Shaping a Shared Future: New Dynamics, New Opportunities, New Cooperation', reflecting the focus on collaborative growth.