## 📈 Asia’s Factory Activity Surges on Strong Global Export Demand

Private-sector surveys indicate a robust start to 2026 for Asian manufacturing, driven by resilient demand from the U.S. and the ongoing AI investment boom. • Regional Performance Overview Japan recorded its strongest growth since August 2022 with a PMI of 51.5. South Korea followed suit, hitting its highest level since mid-2024 at 51.2, signaling a recovery in major export powerhouses. • China’s Strategic Pivot The RatingDog China General Manufacturing PMI rose to 50.3 (up from 50.1). This expansion was fueled by a rebound in export orders, helping offset sluggish domestic consumption and supporting a 5.0% GDP growth rate for the previous year. • Southeast Asian Momentum Manufacturing activity expanded across the region, reflecting broader global trade stability: Indonesia: 52.6 (up from 51.2) Taiwan: 51.7 (up from 50.9) Vietnam, Malaysia, and the Philippines also reported expansionary readings. • Global Economic Outlook The IMF has raised its 2026 global growth forecast, citing receding fears over U.S. tariff impacts. For Sri Lanka’s apparel & textiles and ICT/BPM sectors, this strengthening of global demand and regional manufacturing stability provides a positive backdrop for export-led growth.