""The actual contributions to global growth come more from the Asia-Pacific region than they do from the Americas or Europe," says David Mann, Mastercard's chief APAC economist, in an interview with Fortune. Mann credits plentiful investment, particularly in technology and infrastructure associated with the AI buildout, for Asia's resilient growth. He adds that the APAC region is unique as three-quarters of its foreign direct investment comes from the rest of the region, rather than from non-Asian sources."
""With the U.S. being an increasingly unreliable trade partner, Asian countries are looking to build supply chains with their neighbors. 'Even more investment is going into other markets around the region, from China, to Japan and South Korea, to help expand supply chains and capacity in multiple markets for diversification,' says Mann. Mastercard predicts that growth trajectories will diverge in Southeast Asia next year. Among the ASEAN-5 nations, Indonesia and the Philippines will expand steadily, while growth moderates in Malaysia, Singapore, and Thailand.""
""We think that there will be some support in Indonesia, from fiscal policy and investment expansion," Mann says, adding that he predicts "steady growth" (5% real GDP growth) in Southeast Asia's most populous country. Thailand, on the other hand, is going through a "softer patch", with Mann calling it one of the slower-growing economies in the region. Mastercard predicts real GDP growth in Thailand to slow to 1.8% in 2026. The country faces "relatively large" demographic challenge, Mann adds.""
The Asia-Pacific region contributes more to global growth than the Americas or Europe. Plentiful regional investment in technology and AI-related infrastructure supports resilient economic expansion. Approximately three-quarters of foreign direct investment into APAC originates within the region, strengthening intra-Asian supply chains. Asian economies are diversifying supply chains toward neighboring markets as U.S. trade reliability declines. Southeast Asian growth will diverge: Indonesia and the Philippines are set for steadier expansion, while Malaysia, Singapore, and Thailand face moderating growth. Thailand is projected to slow to about 1.8% real GDP growth amid significant demographic aging challenges.
#asia-pacific-growth #foreign-direct-investment #supply-chain-diversification #asean-economic-outlook
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