Moody's Analytics: AI lift temporary as APAC growth faces inflation
Moody's Analytics says the Asia-Pacific (APAC) region is getting a temporary lift from the AI boom, even as overall economic growth is set to slow.
Growth is expected to dip from 4.3% in 2025 to just 3.6% by 2027, thanks to stubborn inflation and rising business costs, making things tougher for companies and consumers.
APAC must tackle costs for growth
Moody's warns that the AI wave won't keep exports strong forever, so APAC needs to tackle high costs and inflation if it wants lasting growth.
The report also highlights big risks like trade tensions, conflicts in West Asia, and possible oil price spikes, all of which could hit the region hard if global shocks continue.
Basically: APAC's economy is riding the AI wave for now, but it needs smart policies to stay steady when things get rough.