Asian Economic Growth

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ASIAN ECONOMIC GROWTH

By 2030, Asia will contribute roughly 60% of global growth with the bulk of that coming from China, India, and developing markets throughout South-East Asia.

India and China are expected to become the two largest economies in the world by 2050, overtaking the United States, according to the World Economic Forum (WEF). According to WEF data, the combined GDP of these two nations will be $28 trillion by then, compared to $17 trillion for the U.S., and $9.5 trillion for Japan. In addition, India and China will account for 35 percent of the world’s population.

Main Drivers

Innovation

Asia is growing faster than anywhere else, and it is doing it at a much lower cost per employee.

  1. COVID-19 has accelerated technology adoption and innovation.
  2. People are now using digital devices more often.
  3. More people are buying goods online.
  4. More people are using telemedicine services.
  5. More people are buying cars online.
  6. More people are using virtual tours. Asia is a continent full of opportunity.

 

 

Climate Change

Asia is well-positioned to adapt and lead global efforts to mitigate climate change.
Renewable energy is expected to make up 40% of total global energy investment by 2025.
The region has the largest share in installed renewable capacity - 45%.
It is expected to pull further behind, accounting for 64% of new renewable capacity additions worldwide between 2019 and 2040".Asia has made slow progress towards a sustainable future.
Companies are investing heavily in new technologies and policies to reduce emissions. Governments are supporting companies' investments in renewable energy. Asia is heavily exposed to weather risks, and it should take advantage of opportunities to reduce those risks.

Productivity

Asia's corporations grew rapidly in size due to massive amounts of foreign investment. This caused an increase in economic profit. But this did not translate into higher earnings for most of the companies. Economic profit in Asia dropped by over $200 billion during the last decade. Asian countries are still recovering from the coronavirus. However, their economy should recover faster than most other parts of the world because of their strong economic base. Asia has significant opportunities for companies to increase profits. Asia has shown its resilience and adaptability during the current crisis.

 

Data was gathered from multiple sources by Mirela Iancu, a Barcelona-based marketer specializing in organic growth for B2C and B2B.

 

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