# High Energy Costs Put East Asia-Pacific Growth at Risk Through 2028 By John Kim Canonical URL: https://www.tokenpost.com/news/business/27455 Published: 2026-10-07T13:58:41.000Z Updated: 2026-10-07T13:58:41.000Z Section: Business > The region is projected to grow 4.4% annually through 2028, while weaker AI investment and severe El Niño conditions pose additional risks. East Asia and the Pacific is projected to maintain steady growth through 2028, but high energy costs, weaker artificial intelligence investment and severe El Niño conditions could slow activity across the region. The region is expected to expand 4.5% in 2026 and at an average annual rate of 4.4% from 2026 through 2028. Pacific Island economies face particular exposure to energy shocks, while prolonged price increases could add to financial strains. Growth forecasts were raised for Viet Nam to 7.4%, Malaysia to 5.1% and Thailand to 2.0%. The regional outlook covers China, Indonesia, Malaysia, the Philippines, Thailand, Viet Nam and Pacific Island economies. AI-related manufacturing and exports have supported growth in several regional economies. However, AI adoption remains below advanced-economy levels, leaving room for broader productivity gains beyond the production of AI-related goods. Expanding domestic electricity-generation capacity could reduce exposure to imported fossil fuels as economic activity and AI-related demand increase. Stronger energy and digital infrastructure, wider business financing, workforce training and greater regulatory capacity are also needed to support adoption. “East Asia and Pacific’s deep integration into global value chains and economic dynamism have positioned the region to benefit from the surge in global AI-related activity,” said Carlos Felipe Jaramillo, World Bank vice president for East Asia and Pacific. “The challenge now is to turn the region’s strength in producing AI-related goods into widespread AI adoption that boosts productivity and creates more and better jobs for millions of people,” Jaramillo said. Mobilizing private capital for digital and energy infrastructure, expanding business financing and investing in workforce skills could help smaller firms become more competitive, dynamic and resilient. The outlook extends [earlier coverage of the region’s 2026 growth forecast](), which highlighted the challenge of expanding AI adoption beyond manufacturing and exports. ## Links in this article - [earlier coverage of the region’s 2026 growth forecast](https://www.tokenpost.com/news/business/26971)