Analysis
BOAO, Hainan – Asia remains the world’s primary growth engine, as the region’s share of global GDP continues to expand, according to a report released by the Boao Forum for Asia (BFA) yesterday.
The Asian economy is expected to expand by 4.5 percent in 2026, with its share of global GDP rising to 49.7 percent from 49.2 percent in 2025 on a purchasing power parity basis, noted the report titled “Asian Economic Outlook and Integration Progress Annual Report 2026.”
Many people believe that the “Asian Century” has already arrived, BFA Secretary General Zhang Jun said when addressing a press conference.
Despite significant challenges, Asia’s economy remains resilient with a positive outlook, and continues to make important contributions to the global economy, international trade and sustainable development, Zhang said.
Founded in 2001, the BFA is a non-governmental and non-profit international organization committed to promoting regional economic integration and bringing Asian countries closer to their development goals.
Running from March 24 to 27, this year’s conference is themed “Shaping a Shared Future: New Dynamics, New Opportunities, New Cooperation,” and is again being held in south China’s Hainan Province.
According to the report, Asia continues to be the world’s premier destination for foreign direct investment, recognized for its resilience, growth potential and enduring appeal to global investors, with China and ASEAN leading as the most attractive destinations.
On the tech front, the report said the global epicenter of artificial intelligence (AI) development is progressively shifting from Europe and the United States toward Asia.
“Capitalizing on their substantial digital populations, diverse application ecosystems, and coherent policy frameworks, Asian economies are rapidly evolving from AI followers into frontrunners,” it said.
The AI industry chain is now extensive and complex, with different Asian countries possessing their own strengths across various vertical sectors, said Deloitte China Research partner Lydia Chen. “Moving forward, collaboration at the industrial, software, data and policy levels will help facilitate a more convenient and efficient flow of key factors.”
A report on Asia’s sustainable development was also unveiled on Tuesday, highlighting that Asia is emerging as a pivotal force in the global shift toward greener, low-carbon energy, moving from “the largest center of traditional energy consumption” to “a leader in clean energy development.”
In terms of Asian integration progress, the report noted that the foundations of Asian trade integration have continued to strengthen, citing data that intra-regional trade dependence had edged up from 56.3 percent in 2023 to 57.2 percent in 2024, as major economies across the region increasingly orient their trade ties toward one another.
Asia-Pacific economies are increasingly transitioning from individual integration into global value chains toward a model of shared regional integration, with many advancing up the value chain ladder buoyed by support from within the region, it said.
Fueled by rising investment in digital infrastructure, the demand dividend of Asia’s vast markets, and deepening regional economic integration, the region is gradually transforming from a participant in global services trade into one of its principal engines of growth, the report said.
Describing Asia as a beacon of global growth in recent years, Denis Depoux, global managing director at Roland Berger, noted that China is playing a strong role in this trend, fueled by significant technological breakthroughs.
China, with its advantage of a vast market, is further expanding its opening up to the world, particularly by fostering a new type of economic globalization that is inclusive and beneficial for all, said Sang Baichuan, dean of the Institute of International Economy at the University of International Business and Economics. “This enables China’s open and huge market to provide more opportunities for Asian economies and the wider world.”
He added that as a result, the internal cohesion of Asia’s economy will be further strengthened, and its resilience to external shocks will be enhanced.
Regional cooperation mechanisms serve as important tools for remaining open and providing policy certainty, said Rebecca Fatima Sta Maria, former executive director of the APEC Secretariat. “This certainty can attract investment and promote more sustainable and lasting development.”
This year marks the APEC “China Year,” with the theme of “Building an Asia-Pacific Community to Prosper Together.” China will host the 33rd APEC Economic Leaders’ Meeting in November. – Xinhua
This photo taken on yesterday shows a panel discussion themed on “Free Trade Ports: Opportunities and Missions as Gateways for Opening-up” during the Boao Forum for Asia (BFA) Annual Conference 2026 in Boao, Hainan Province. – Xinhua
