World Economic Forum outlook points to stronger growth momentum in Southeast Asia
The World Economic Forum’s latest Chief Economists’ Outlook highlights a broad cost‑of‑living squeeze driven by higher food, electricity and transport prices, with food inflation identified as a key risk. In Southeast Asia, the outlook signals an overall strengthening of growth prospects, noting that Malaysia is projected to expand in 2026 on the back of technology‑related exports, ongoing investment and robust household demand.
The survey also projects Vietnam to grow around 7.5% and Thailand about 1.9% over the same period. Labour‑market sentiment appears upbeat, with most economists expecting unemployment to remain unchanged and a minority forecasting a decline, while inflation expectations have shifted.
How this was covered
- Left-leaning outlets covered this 13h later
- The two sides describe this in almost entirely different words
Why it matters
The regional outlook influences employment prospects, price stability and household purchasing power for ordinary consumers.
How this story developed
- Sep 9 ASEAN leaders warn connectivity alone won’t bridge emerging AI divide
- Sep 14 Thick haze from Kalimantan forest fires cut visibility to about 300 m, causing 73 flights over three days to be delayed or rescheduled at Supadio Airport.
- Sep 16 The Malaysian government is consulting Malaysia Airlines and Batik Air about taking over AirAsia's domestic market share as the low-cost carrier faces financial strain.
- Sep 17 Indonesia broadened its wildfire‑containment operations to additional provinces and national parks.
- Sep 18 AirAsia announced a US$1 billion fundraising effort on the international debt market.
- Sep 20 India and Thailand met to assess accelerating the ASEAN‑India trade pact review.
- Sep 20 The Philippines and Canada reported that the fourth round of talks resolved the biggest sticking points in their pending free trade agreement. Both sides said only a small number of minor issues remain, to be addressed through follow-up meetings and virtual discussions in the coming months. The progress puts the pact on track for completion before the end of the year.
- Sep 22 In the August WEF survey of 36 chief economists, more than 60 % predict income growth in India and South-East Asia, contrasting with expectations of flat or falling real incomes elsewhere. Respondents also foresee higher household costs, especially for food, electricity and transport. Indian economists warned the optimism may be short-lived, citing rising retail inflation and vulnerable food prices, and highlighted the influence of oil prices and government buffering on future wages.
- Sep 22 EU trade chief Maros Sefcovic and Philippine Trade Secretary Cristina Roque announced a significant milestone in their free‑trade negotiations.
- Sep 23 Malaysia’s GDP expansion forecast was added to the outlook.
Related stories
26 in this thread