Strong demand for technology products pushed Asia-Pacific trade into double-digit growth in the first quarter of 2026, offering a key source of momentum for the region’s economy.

The latest APEC Regional Trends Analysis showed merchandise exports across the Asia-Pacific Economic Cooperation region jumped 18.8 percent in value and 10.8 percent in volume from a year earlier.

Imports also posted strong gains, rising 10.2 percent in value and 11.1 percent in volume.

Sustained demand for electronics

APEC Policy Support Unit director Carlos Kuriyama, analyst Rhea Crisologo Hernando and researcher Eldo Simanjuntak attributed the performance to sustained demand for electronics and other goods linked to technology and digitalization.

Tech investment an important engine of regional growth

“The robust trade performance points to strong underlying demand for goods, particularly those linked to technology and digitalization. Technology investment has become an important engine of regional growth, supporting demand for electronics and other technology-related products,” they said.

The researchers, however, warned that the region’s growing reliance on technology-related trade could create vulnerabilities if demand or investment weakens.

“For instance, it remains uncertain whether the massive investments in AI will deliver the expected returns. At the same time, geo-economic developments and trade policy uncertainty could cloud the outlook for technology-driven trade,” they added.

Geopolitical developments remain regional output risks

They also noted that trade policy uncertainty and geopolitical developments remain risks to the region’s outlook, even as supply chain constraints have eased.

APEC’s overall growth is expected to moderate from 3.3 percent in 2025 to 3.2 percent this year and 3 percent in 2027.