PECC · State of the Region 2026–2027

PECC Flagship Report

Asia-Pacific optimism holds despite trade headwinds, but AI gains hinge on capacity

PECC’s State of the Region 2026–2027 finds leaders more confident in the Asia-Pacific than the global economy, wary of protectionism, and calling on APEC to turn AI adoption into shared prosperity.

578respondents
23Asia-Pacific economies
2 Jun–15 Aug 2026survey period
51%of respondents are optimistic about Asia-Pacific economic growth over the next two to three years
21%for the global economy
Growth Expectations in the Next 2-3 YearsThe region is more upbeat than the world: 51% expect stronger Asia-Pacific growth, versus 21% for the global economy

Optimism is tempered by mounting headwinds

“Increased protectionism and trade wars” is the most serious risk

Top 5 Risks to Growth

Respondents’ top priorities for APEC

Protectionism and trade wars is the No. 1 priority, with AI adoption and its risks in the top five

Top 5 Priorities for APEC Leaders

AI Adoption in the Asia-Pacific: Pathways to Economic Opportunities

AI boosts efficiency and productivity; on labor market the most common answer is “no impact”

75%higher productivity reported by users
82%greater efficiency reported by users

Preparations are failing to keep pace

Digital infrastructure is the strongest foundation; AI safety frameworks and reskilling lag

Capacity building as a central pillar of regional cooperation

Tackling AI-enabled scams and cyberattacks is the top ask, followed by reskilling and AI infrastructure

Top 5 Areas for AI Cooperation under APEC

Fears of AI-driven job losses have yet to materialize

Although displacement remains a major policy concern, how many respondents reported AI-related layoffs?
Out of 100, take a guess.

“AI is already raising productivity across our region, but the gains will not spread on their own.

The priority now is to

  1. invest in people,
  2. build trusted and interoperable rules, and
  3. help every economy, especially smaller ones and MSMEs, put them into practice.

APEC is the right platform to do that.”

PECC Co-Chairs Richard Cantor and Zhan Yongxin

Read the full report

This page covers the survey results in Annex A. The full report has the analysis behind them.

www.pecc.org/research/state-of-the-region

Source: PECC, State of the Region 2026–2027, Annex A (Asia-Pacific Policy Community Survey). Shares are of respondents.