SINGAPORE:The ASEAN+3 region's economy expanded by 4.3 per cent in 2025, supported by firm domestic demand and robust exports, but downside risks emerged amid West Asia conflicts, according to the ASEAN+3 Macroeconomic Research Office (AMRO).

The ASEAN+3 comprises ASEAN member states plus China, Japan and Korea. 

AMRO said the region's economic activity remained supported by firm domestic demand and robust exports, boosted by artificial intelligence (AI)-driven semiconductor demand, sustained investment, and strengthening intraregional economic linkages. 

AMRO chief economist, Dong He said while the ASEAN+3 region entered 2026 from a position of strength, the West Asia conflict has shifted the balance of risks to the downside.

He noted that the ongoing conflict in West Asia and disruptions to the global energy supply have materially increased downside risks to the ASEAN+3 economic outlook.

"That said, the region is better placed than in earlier episodes to navigate an energy shock - its economies are more energy-efficient and less oil-dependent, and it has entered this period with low inflation, and most retain meaningful policy space to respond," he said at the launch of ASEAN+3 Regional Economic Outlook (AREO) 2026 report on Monday.