Domestic demand anchors growth amid global headwinds
Global Economy: Global growth is set to moderate in 2026. The US remains supported by resilient consumer spending and strong AI‑related investment. Europe is gradually recovering, while China and India face tariff‑driven headwinds. ASEAN should sustain steady expansion, anchored by resilient domestic demand despite a challenging external backdrop.
Risks: Global risks in 2026 remain skewed to the downside. The lagged impact of US tariffs, ongoing geopolitical tensions and softer external demand from major economies continue to weigh on the global outlook. However, the prospect of global monetary easing should help cushion external trade pressures and support overall activity.
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