South Asia in February 2026: the most important developments in economy
Economic news across South and Southeast Asia in February 2026 centred on trade deals with the United States. Bangladesh and the US finalised an agreement setting the US tariff on Bangladeshi goods at 19%, with exemptions for certain clothing and no requirement for reciprocal tariffs; Bangladesh will open its dairy and agricultural sectors to US products. India was reported to be set for a '0% tariff' deal on textiles, which a Bangladeshi official described as 'done in the dark', while another indicated Bangladesh may seek to renegotiate. Indonesia and the US signed a reciprocal deal with a maximum tariff of 19% and exemptions including palm oil; Indonesia later said the rate had been cut to 15% following a court ruling. US and Indonesian firms signed investment deals worth $38.4 billion ahead of a meeting between President Donald Trump and Prabowo. Vietnam's Sun PhuQuoc Airways signed a $22.5 billion deal to buy 40 Boeing 787 jets, and the US imposed steep duties on solar panels from India and Indonesia.
Indonesia also drew attention on credit and resources. Moody's changed its outlook on the country's sovereign rating to negative, citing governance concerns, and S&P Global flagged risks weeks later. Indonesia will use state funds to repay about $7 billion of debt for the Whoosh high-speed rail project, cut its nickel mining quota, and renewed ExxonMobil's Cepu block contract until 2055, a deal valued at about $10 billion.
Elsewhere, Thailand's central bank unexpectedly cut its key interest rate after the election and upgraded its 2026 growth forecast, while foreign investors bought the largest volume of Thai stocks in four years. Singapore established a national space agency, planned a National AI Council in its 2026 budget, and agreed new capital market initiatives with China; Deliveroo will end its Singapore service after 4 March. Vietnam licensed SpaceX to provide internet services, and Bangladesh signed its first economic partnership agreement with Japan. The IMF Managing Director visited Sri Lanka.
by WorldBrief & Maksim Micheliov | AI-generated summary
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