Asia's economy expected to expand 4.5 pct in 2026: report--C

BOAO, Hainan, March 24 (Xinhua) -- Asia remains the world's primary growth engine, with its economy forecast to expand by 4.5 percent in 2026, according to a report released by the Boao Forum for Asia (BFA) on Tuesday.

Asia's share of global GDP is projected to continue its upward trajectory, rising from 49.2 percent in 2025 to 49.7 percent in 2026 on a purchasing power parity basis, according to the report titled "Asian Economic Outlook and Integration Progress Annual Report 2026."

The foundations of Asian trade integration have continued to strengthen, the report noted, citing data that intra-regional trade dependence edged up from 56.3 percent in 2023 to 57.2 percent in 2024, as major economies across the region increasingly orient their trade ties toward one another.

"China and ASEAN continue to stand out as the region's twin 'anchors of stability'," the report pointed out.

Asia-Pacific economies are increasingly transitioning from individual integration into global value chains toward a model of shared regional integration, with many advancing up the value chain ladder buoyed by support from within the region, it said.

The region also continues to be the world's premier destination for foreign direct investment, recognized for its resilience, growth potential and enduring appeal to global investors, with China and ASEAN leading as the most attractive destinations, it said.

On the tech front, the report said the global epicenter of artificial intelligence (AI) development is progressively shifting from Europe and the United States toward Asia.

"Capitalizing on their substantial digital populations, diverse application ecosystems, and coherent policy frameworks, Asian economies are rapidly evolving from AI followers into frontrunners," it said.

Founded in 2001, the BFA is a non-governmental and non-profit international organization committed to promoting regional economic integration and bringing Asian countries closer to their development goals.

Running from March 24 to 27, this year's conference is themed "Shaping a Shared Future: New Dynamics, New Opportunities, New Cooperation."