IMF Warns Energy Risks Hit Asia-Pacific; Advises Thailand to Restore Fiscal Space and Target Aid

Key summary

The International Monetary Fund (IMF) warns that energy risks continue to threaten the Asia-Pacific region, which relies heavily on energy imports. At the IMF-World Bank Annual Meetings in 2026, the Asia and Pacific Department highlighted that while the region's economic growth is expected to slow slightly from 5% in 2026 to 4.8% in 2027 and 4.4% in 2028, significant challenges remain. The IMF specifically advises Thailand to rebuild its fiscal space and implement targeted assistance for vulnerable households with high debt levels rather than broad energy subsidies. Officials also noted that overlapping crises have reduced global fiscal buffers, urging governments to balance fiscal discipline with growth-friendly policies.