SINGAPORE: The Asia Pacific region is poised to remain a relatively bright spot in 2026 even as the global economy confronts geopolitical tensions, shifting trade dynamics and accelerating artificial intelligence investment, according to the latest annual outlook from the Mastercard Economics Institute (MEI).

MEI said that Asia Pacific’s growth will be supported by easing inflation, more accommodative monetary policy and rising real incomes.

It noted that consumers will remain value-conscious, while prioritising experiences such as travel and live events. 

Globally, real gross domestic product (GDP) growth is expected to ease slightly to 3.1% next year from an expected 3.2% in 2025.

Fiscal stimuli and technological advances – especially around AI – are expected to lift growth, though the gains will vary widely across regions, MEI said.

“Given its centrality to global trade, Asia Pacific has shown remarkable resilience at a time when tariff uncertainty and shifting supply chains have threatened to upend international commerce,” said David Mann, Mastercard’s chief economist for Asia Pacific, in the statement.

He noted the region’s next phase of growth will depend on how effectively governments and businesses adjust, strengthen their digital capabilities and respond to shifting consumer behaviour.

Mann noted that lower energy prices and cheaper goods from China are improving consumers’ purchasing power in the region, helping them pull ahead of rising costs.