Asia: Economic outlook and market strategy for 2026 – DBS Bank

FXStreet Insights Team FXStreet

DBS Bank research team provides insights into the economic outlook for Asia and ASEAN in 2026, highlighting resilience despite global trade tensions.

Resilience in Asia's economic outlook

"A year that began with unprecedented fear about global trade and multilateral rules-based order is ending with guarded relief. It has turned out to be a test of resilience that the global economy in general and trade intensive Asia has passed well so far."

"US trade restrictions are not turning out to be as blanket and burdensome as had been feared initially. Tariffs are coming in various shapes and forms, characterised by varying rates, exemptions, and grace periods; all subject to endless negotiations. The appetite of US consumers has not been dented by these developments, it seems. Consequently, most Asian countries have enjoyed strong exports growth to the US this year."

"Our acronym of the year, TOTUS, Trade Outside the United States, takes us to the second factor explaining surprising resiliency."

"As separate paths are charted, investment flows get recalibrated. The likes of Malaysia, Singapore, and Vietnam are already seeing record FDI; we see more potential in 2026 and beyond. Monetary conditions are constructive; food and fuel inflation not an issue. The region is stepping into the new year with reduced anxiety."

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FXStreet Insights Team

FXStreet

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