World Bank raises East Asia growth outlook to 4.5%, warns of AI risks

The World Bank just gave East Asia and the Pacific a better report card, and it has artificial intelligence to thank for most of the improvement. In its East Asia and Pacific Economic Update, published on October 6, 2026, the lender projected regional growth of 4.5% for the year. That is 0.3 percentage points higher than its earlier call. Who got the upgrade The revision came largely from economies that export the physical goods AI runs on. Think chips, electronics and the components that fill data centers. Vietnam was the standout. The World Bank now expects it to grow 7.4%, a jump of 1.1 percentage points from its prior estimate. Malaysia’s forecast rose to 5.1%, up 0.7 percentage points. Thailand also gained 0.7 percentage points, though it lands at a more modest 2.0%. Not everyone joined the party. China’s growth is pegged at 4.4%, held back by weakness in its labor market and ongoing trouble in the property sector. The Philippines stayed put at 3.7%, unchanged from earlier predictions. The Pacific Island nations moved the other way, with their outlook downgraded to 2.2%. More than 70% of export growth in Thailand, Malaysia, the Philippines and Vietnam is linked to AI-related p...