From mint · Harsha Jethmalani · · 1m 20s
AI boom widens North and Southeast Asia current account gap
AI demand lifts Taiwan and Korea's exports while Southeast Asia faces trade deficits.
In brief
AI demand lifts Taiwan and Korea's exports while Southeast Asia faces trade deficits. The AI boom is widening the current account gap between North and Southeast Asia as chip exports boost Taiwan and Korea while data centre imports and oil costs hurt Southeast Asia. Originally reported by mint.
Current account gap widens
The AI boom is widening the current account gap between North and Southeast Asia as chip exports lift Taiwan and Korea while data centre imports and higher oil costs weigh on Southeast Asia.
Northeast Asia surplus
Northeast Asia recorded a current account surplus of $538 billion in the 12-month sum to July 2026, a record high.
Southeast Asia deficits
Southeast Asia faces increasing current account deficits due to data centre investment and higher oil costs.
Tech supply chain split
Taiwan and Korea dominate higher-value tech supply chain segments, capturing export upside from AI server and memory chip demand, while Southeast Asia focuses on low-value assembly.
Thailand's trade deficit
Thailand faces persistent electronics trade deficits due to data centre investment being more import-intensive.
Oil price impact
Higher oil prices create negative terms-of-trade shocks for Southeast Asia, particularly Thailand, the Philippines, and Indonesia.
What matters most
The AI boom is widening the current account gap between North and Southeast Asia as chip exports boost Taiwan and Korea while data centre imports and oil costs hurt Southeast Asia.
