World Bank warns of AI concentration risks as it lifts East Asia and Pacific growth outlook to 4.5%

The World Bank has raised its growth forecast for the East Asia and Pacific region on the back of artificial intelligence-related exports, while warning that its reliance on the AI boom leaves it vulnerable to a potential global tech spending reversal. The region includes 23 economies, including China, Vietnam, Indonesia, Malaysia and Thailand. The EAP economy is expected to expand 4.5% this year, 0.3 percentage point more than the bank projected in April, according to its latest report released Tuesday. Growth is forecast to ease to 4.4% in 2027 and 4.3% in 2028. Vietnam received the biggest forecast upgrade among major economies of the region, up 1.1 percentage point to 7.4%.