Interview : IMF official says Asia resilience driven by muted energy shock , AI boom

BANGKOK, Oct. 19 (Xinhua) -- Asia is showing resilience in economic growth, driven by muted energy shock and artificial intelligence (AI) boom, an International Monetary Fund (IMF) official has said. "For China, and for the (Asia) region overall, we see resilience," Thomas Helbling, deputy director in the IMF's Asia and Pacific department, told Xinhua in an interview during the 2026 Annual Meetings of the IMF and the World Bank Group held in Bangkok. In its latest Regional Economic Outlook for Asia and Pacific released on Thursday, the IMF raised Asia's 2026 economic growth forecast to 4. 8 percent, up 0. 4 percentage points from its April projection. China's growth for 2026 was projected at 4. 5 percent, 0. 1 percentage point higher than the April forecast. Helbling noted that the impact of the energy shock has been more muted than expected earlier in the year, adding that in China's case, the government has mitigated the impact on end-user prices and mobilized other energy sources to partly compensate for the negative fossil fuel supply shock. Asia is also benefiting from the AI boom, Helbling stressed. "The AI boom is broadening, and it has broader positive spillover effects on the region," he said. The AI boom is very strong in South Korea, and has grown stronger in economies such as Vietnam and Malaysia, he explained, adding that it is also a factor in Japan's, China's, and India's export strength. On risks to the Asia-Pacific economic outlook, Helbling noted that the IMF remains concerned about the energy supply shock. While inventory buffers and measures such as energy subsidies or tax reductions have limited the impact of the energy supply shock, such measures are difficult to sustain over time, he said. "Buffers are not endless," he stressed, explaining that if the energy shock lasts longer or intensifies, countries will at some point deplete their inventories, and the full price impact will affect the economy more severely. He recommended that countries rebuild buffers so they are in a position to respond to another energy supply shock. Helbling also flagged AI-related risks. "At a time when there is very strong AI investment, when leverage and financial vulnerabilities related to AI are increasing, there is a concern that AI could disappoint in the short term in terms of profits and revenue it generates. And this could trigger a market correction, which would eventually lead to some correction in investment and demand," he said. It is important to establish regulatory and supervisory regimes so that the financial system is able to absorb possible shocks in the AI ecosystem, for example, through limiting leverage and overexposure to AI sectors, he stressed.