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Asian Economies Surge on AI Boom, But World Bank Warns of Rising Risks
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CNBC Awaaz•06-10-2026, 13:14
Asian Economies Surge on AI Boom, But World Bank Warns of Rising Risks
- •The World Bank upgraded the 2026 growth forecast for East Asia and the Pacific to 4.5 percent, driven by a surge in demand for AI-related goods and chips.
- •Vietnam saw its growth forecast raised by 1.1 percentage points to 7.4 percent, while Taiwan increased its 2026 forecast to 11 percent.
- •In Malaysia, the Philippines, Thailand, and Vietnam, more than 70 percent of export growth came from AI-related products.
- •The World Bank warned that heavy reliance on AI spending creates concentration risk, with US tech capital expenditure drawing comparisons to the dot-com bubble.
Key Questions Answered
The World Bank expects the region's economy to grow by 4.5 percent in 2026, which is 0.3 percentage points higher than its previous projection.
South Korean exports surged by 83.5 percent in September to reach a record $120.9 billion, with electronic chips accounting for half of this total.
Countries facing rapid growth driven by AI could experience severe setbacks if tech spending declines, potentially impacting factories, exports, investments, and banks. Additionally, funding reliance on private credit and high market concentration pose significant risks.
