Energy exposure is a key concern, as Asia accounts for around 38 percent of global oil consumption and 24 percent of natural gas use.
IMF Report: Asia Remains Growth Engine as Growth Slows to 4.4% Amid Trade and Energy Pressures
The International Monetary Fund (IMF) has said Asia remains the biggest driver of global growth, with India and China contributing about 70 percent of regional expansion.
Despite this strength, the region is facing growing pressure from multiple fronts, including US tariffs, global trade uncertainty and a potential energy shock linked to the West Asia crisis.
Energy exposure is a key concern, as Asia accounts for around 38 percent of global oil consumption and 24 percent of natural gas use, making it highly sensitive to supply disruptions.
The IMF projects slower growth ahead, with Asia-Pacific expansion expected to fall to 4.4 percent in 2026 and 4.2 percent in 2027, compared with 5 percent in 2025.
Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, said Asia entered 2026 in a relatively strong position despite global uncertainty.
He added that inflation pressures are rising and financial conditions are tightening as external balances weaken due to energy-related shocks.
The IMF noted that several Asian economies ended 2025 with stronger-than-expected growth, supported by domestic demand and exports.
It also said trade patterns are shifting, with exports to the United States declining while shipments to other global markets increase.
Overall, the IMF said Asia’s resilience is being supported by diversified trade flows, even as geopolitical tensions continue to affect energy markets and financial stability.
