-- Developing Southeast Asia is expected to maintain steady economic growth this year, supported by resilient domestic demand, according to the Asian Development Bank (ADB) report on Monday.
The subregional economy is projected to expand by 4.7% in 2026 and by 4.8% in 2027, although growth trends will vary significantly across individual economies.
Indonesia's growth outlook is expected to strengthen on solid domestic demand, while Myanmar is projected to rebound from contraction in 2025 as reconstruction activity supports recovery.
In contrast, growth in Malaysia, Thailand and Vietnam is expected to moderate due to weaker global trade conditions and fading export momentum, although technology-related exports are likely to provide some support.
Meanwhile, the Philippines is projected to remain subdued, Cambodia may see slower growth in 2026 before recovering in 2027 alongside tourism recovery, while Timor-Leste is expected to remain stable before accelerating.
Inflation in developing Southeast Asia is forecast to rise to 3.2% in 2026 from 2.3% in 2025, driven by stronger domestic demand and higher food and energy costs. Price pressures are expected to increase across most economies, particularly in Indonesia, the Philippines, Malaysia, Thailand, and Vietnam, amid higher oil prices and domestic adjustments.
Inflation is expected to ease to 2.8% in 2027 as global commodity prices stabilize, with Myanmar projected to see softer price pressures due to improved transport conditions, currency strength, and better agricultural output, the report showed.