- Protests are underway regarding US military strikes on commercial vessels, and Narendra Modi has been advised to raise the matter with the US President.
- Industry leaders, including representatives from Mitsui O.S.K. Lines and the IEA, are providing assessments regarding maritime operations and advocating for unimpeded passage through the Strait of Hormuz.
- Energy risks for Southeast Asia are exposed due to the Iran war, causing demand shocks observed by a solar company in Manila, amidst the IEA's assessments.
- Global economic headwinds, including slowing demand in Southeast Asia and Indonesia, are compounded by geopolitical risks stemming from the Middle East conflict and US trade policies.
IMF raises Korea's 2026 economic growth forecast to 2.6%
What happened
The International Monetary Fund released an update to its World Economic Outlook, raising South Korea’s projected economic growth rate for the year to 2.6%. This forecast was 0.7 points higher than the April outlook of 1.9%. The IMF attributed this growth to strong external demand for semiconductors, which was offsetting the negative impacts of the war between the U.S. and Israel.
From hani.co.kr
Why it matters
The IMF noted that South Korea was among the top four net exporters of AI-related hardware, alongside Thailand and Malaysia. The report stated that South Korea's growth was the highest among all advanced economies included in the forecast. This highlights the reliance of regional economies on global trade flows.
From hani.co.kr
Who's involved
- ThailandOne of the top four net exporters of AI-related hardware
- MalaysiaOne of the top four net exporters of AI-related hardware
- Middle EastGeopolitical region whose conflict impacts global trade and economic outlook
How it developed
Newest first. Tap a step to see who reported it.- Tourism Malaysia seeks budget allocation from Parliament while extending campaigns due to Middle East crisis.Sub-event
- LNG shipments are being affected by the Strait of Hormuz crisis, leading to price volatility and requiring joint agreements between affected nations.Sub-event
- Renewed tensions between the U.S. and Iran in the volatile Middle East are creating geopolitical risks that are negatively affecting Thailand's economic outlook through trade flows.Sub-event
- Leaders from Malaysia and Thailand met to discuss shared history, trade, and investment opportunities.Sub-event
AI hardware exporters Thailand and Malaysia face economic headwinds from the Middle East conflict.1 source
Keep exploring
Part of
Global economic headwinds, including slowing demand in Southeast Asia and Indonesia, are compounded by geopolitical risks stemming from the Middle East conflict and US trade policies.Also in this story
- Indonesia renews a trilateral agreement to strengthen cooperation amid regional security issues.
- Carney discussed trade with Trump amid global economic worries, while war prospects affect oil markets and bond yields.
- Negative impact on international segment efficiency observed between Southeast Asia and the Middle East.
- Indonesia is actively seeking ways to offset economic disruptions caused by the ongoing situation in the Middle East.
The entities involved
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Thailand
country in Southeast Asia
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Malaysia
country in Southeast Asia
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Middle East
geopolitical region encompassing Egypt and most of Western Asia, including Iran
Related events
- AI investment is boosting technology exports while global conflict weighs on economic outlook.
- South Korea is strategically pivoting its focus towards the Indo-Pacific, recognizing its reliance on Middle East energy flows via the Hormuz Strait.
- Taiwanese companies are investing in Thailand's high-tech sectors and supplying AI equipment to the country.
- McKinsey analyzes Singapore's economic trends, noting that energy costs from the Middle East conflict are driving up import prices.