Singapore, Sept. 17 -- Southeast Asia's economic growth is showing a growing divergence, with technology and export-driven economies such as Vietnam and Malaysia gaining momentum, while weaker domestic demand is slowing growth in Thailand and the Philippines, according to McKinsey & Company's September 2026 quarterly review.

"The second quarter therefore leaves Southeast Asia with a more differentiated growth picture: a powerful external technology cycle continues to provide momentum, while the energy shock is testing how effectively individual economies can translate that tailwind into broader domestic growth," the report said.

It added that the region's growth outlook will depend on inflation, currency pressures and household spending...