(MENAFN) Asia-Pacific economic expansion is now anticipated to reach 3.1 percent during 2025, marking an upward revision from previous projections, the latest APEC Regional Trends Analysis reveals.

Robust international commerce and surging appetite for advanced technology products have bolstered the improved outlook, the analysis indicates.

Yet officials caution that momentum may decelerate to 2.9 percent by 2026 as government borrowing escalates and short-term catalysts dissipate.

Cross-border commerce demonstrated substantial strength through the initial six months of 2025, with outbound shipment values climbing 6.5 percent while inbound purchases advanced 6.1 percent.

Projections suggest export expansion will dramatically cool to approximately 1 percent in the coming year as commercial disputes continue, according to the assessment.

Total government debt across APEC economies is forecast to surpass 110 percent of gross domestic product by 2026—a marked escalation from earlier predictions.

The analysis emphasized that collaborative frameworks remain essential for preserving financial stability throughout the bloc.

"As trade frictions grow and uncertainty persists, a predictable policy environment together with open dialogue will be essential to restore confidence and sustain growth across the region," the report stated.

The findings underscore mounting fiscal pressures confronting Pacific Rim nations as geopolitical tensions threaten to undermine the region's recovery trajectory.

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