NEW DELHI, June 19 -- India and other Asia-Pacific economies have emerged from the West Asia conflict in better shape than many had feared, buoyed by a surge in artificial intelligence (AI)-driven exports and investment. But that support is masking a growing list of vulnerabilities-from higher energy prices and persistent inflation to trade tensions and weather disruptions-that could weigh on growth in the second half of 2026, Moody's Analytics said in a report on Friday.

The ratings and research firm expects growth across Asia-Pacific to ease to 4.1% in 2026 from 4.3% in 2025, as the boost from AI-related demand begins to fade.

"That slight improvement on our May forecast of 4% reflects a better-than-expected start to the year. But as ...