​​​​​​​Asia's Growth Story Is Becoming Increasingly Uneven

Allianz Global Investors' Asia Macro Update examines how higher energy prices, tighter U.S. financial conditions and the AI investment boom are creating sharply different outlooks across Asian economies.

• Economies with high energy import dependence and weaker external balances—such as the Philippines, Indonesia, India and Thailand—appear most vulnerable to prolonged disruption around the Strait of Hormuz.

• A more hawkish Federal Reserve could tighten financial conditions across Asia, increasing pressure on currencies and capital flows in countries with current account deficits.

• AI investment continues to favour semiconductor leaders including South Korea, Taiwan, Singapore and Malaysia, widening the growth gap between technology exporters and more domestically driven economies.

Read the full report for a deeper assessment of which Asian markets are best positioned as macro risks continue to diverge.