News18

India continues to dominate among Asia-Pacific economies next year with the growth rate at 6.6 per cent and inflation at 4.2 per cent, according to the annual economic outlook for 2026 by the Mastercard Economics Institute (MEI).

Factors that make India among the fastest-growing major economies are favourable demographics, rapid digitization and technological advancements, leading to a growth in global capability centres and Tier 2-3 cities.

The report mentioned that tourism has emerged as a key growth lever with destinations such as Goa, Rishikesh and Amristar attracting experiential and spiritual travelers.

AI Enthusiasm Index score of 8, the report said, shows growing push of AI adoption in the country, harnessing the next wave of productivity gains.

Globally, MEI expects real GDP growth to ease marginally to 3.1 per cent in 2026, compared to an estimated 3.2 per cent in 2025.

Asia Pacific has shown strong resilience despite tariff uncertainty and shifting supply chains that have disrupted global trade, said David Mann, chief economist for Asia Pacific at Mastercard.

He noted that the largely positive outlook for consumers across the region reflects an important trend heading into 2026. Even as trade realignments and technological changes shape the global economy, improving microeconomic conditions in many Asia Pacific markets are supporting demand. Mann added that businesses will need to closely track these underlying demand trends.

According to the report, Asia Pacific continues to remain central to global supply chains despite ongoing realignments. India, ASEAN and the Chinese mainland are playing an increasingly important role as companies rethink sourcing strategies and investment plans.

(With IANS Inputs)