Asian Development Bank raises Southeast Asia growth forecast on AI-driven exports

The Asian Development Bank (ADB) has raised its economic growth forecasts for developing Southeast Asia, citing strong technology exports and investment. The region is now expected to grow 4.7% in 2026 and 4.9% in 2027, up from previous estimates. The upgrades come despite energy disruptions and El Nino risks. Vietnam's forecast was raised sharply to 7.8% for 2026, while Malaysia also saw an upgrade. However, the ADB warned of downside risks from agriculture and hydropower dependence, and raised inflation forecasts due to higher energy costs.