Asia's economy entered 2026 resilient despite trade tensions, but a Middle East war has triggered an energy shock testing that strength through higher oil and gas prices and widening trade gaps. The region is strategically diversifying its export engines, with AI-related trade becoming the most substantial growth engine as Asian semiconductor hubs supply global markets. China is re-anchoring its export ecosystem beyond the US market toward ASEAN, Europe, and Africa, while Southeast Asia deepens its role in global manufacturing. Geopolitical tensions and energy market disruptions are now central to the global economic outlook, requiring policy responses that protect vulnerable populations and accelerate resilience-building reforms.
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