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AI boom widens current account gap between Northeast and Southeast Asia

Northeast Asia’s current account surplus hit a record high of $538 billion on a 12-month basis through July 2026, while Southeast Asia deficits deepened as data center imports and higher oil costs weighed.

Reported · Written up by our desk · Asia

An AI-driven shift in trade flows is widening the current account divergence between Northeast and Southeast Asia, with Northeast Asia posting a growing surplus while parts of Southeast Asia see larger deficits, according to LiveMint Markets citing Reuters.

LiveMint Markets says Taiwan and Korea are leading high-value tech supply chain segments and are benefiting from rising AI demand, including chip exports.

In contrast, LiveMint Markets reports that Southeast Asia remains focused on lower-value assembly, while data center imports and higher oil costs are weighing on the region’s current account balances.

The article also notes that Northeast Asia’s current account surplus rose to a record $538 billion based on the 12-month sum to July 2026, as deficits increased across parts of Southeast Asia.

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