DBS Group Research Hub

DBS Group Research provides a comprehensive outlook on the global economy as of mid-2026, characterized by persistent stagflationary risks driven by Middle East geopolitical tensions and energy price volatility. Across Asia, the research highlights a divergence between strong electronics-led growth in hubs like Singapore and Taiwan, fueled by the global AI upcycle, and inflationary pressures impacting countries like India, Indonesia, and the Philippines. Central bank policies are adjusting to these challenges, with the ECB expected to hike rates to counter inflation, while the Bank of Korea maintains a tightening bias and the RBI holds steady amidst climate-related agricultural uncertainties. Furthermore, the firm monitors significant fiscal constraints in markets like Thailand, where high public debt limits stimulus efficacy. Looking ahead through 2027, DBS expects a generally stable interest rate environment despite ongoing FX volatility in the JPY and KRW, emphasizing the need for granular monitoring of export sector performance and food security buffers.