Jakarta, May 28 -- Economic growth across the ASEAN+3 region is expected to slow to about 4% in 2026 and 2027 as escalating geopolitical tensions, energy disruptions, and global trade uncertainty weigh on the outlook, according to the ASEAN+3 Macroeconomic Research Office (AMRO).

Speaking at a recent session titled "ASEAN Regional Economic Outlook and Fiscal Policy" in Yogyakarta, Indonesia, AMRO Senior Economist Catharine Kho warned that the region's economic outlook remains uncertain, with inflation potentially rising due to the impact of conflicts in the Middle East, global tariff developments, and changes in the global technology cycle.

The economist held that tensions in the Middle East are currently the biggest risk to the region'...