As the Covid-19 pandemic continues torage across the globe, much attention has been placed on China’s short term recovery. However, when taking a long-term view, the future of the region appears to be less in doubt.
In glaring contrast to the economic recessions that have befallen the West, experts assert that emerging economies in Asia, particularly China, will dominate global growth in the years ahead.
Research by the Bank of China cites five primary factors that contribute to Asia’s impressive long-term potential. To start, by 2050, four of the seven largest economies in the world will lie in Asia. China will likely be atop the group, rendering it the world’s largest economy by far. Furthermore, the region’s colossal population boosts its potential for economic growth in the form of a massive consumer market. This population size coupled with its escalating development means that it is closer to achieving a middle-income status than any other far less populous area.
Combine these elements with Asia’s considerable natural resources and the region’s bullish appetite for investment, and the near future looks extremely promising.
The region has also become an attractive destination for manufacturing and technology services, having developed many innovation hubs in recent decades. China, for example, is the world’s third-largest patent filer and has invested heavily in its intellectual property infrastructure. Other areas in Asia are now beginning to invest in their own in-house research and development capacities, with South Korea leading the way in terms technological sophistication.
As a result, Asian countries now have access to a greater pool of skilled workforce – and almost 50 percent of the world’s online services are based in Asia, thereby increasing the odds of further economic success.
Regardless of the other potential barriers to economic growth, such as political unrest and social unrest, the long-term outlook on China remains largely unaffected. The five factors mentioned are likely to remain in favor of the Asian region.
Conclusively, an unprecedented mixture of factors in the region appears to have laid the groundwork for Asia to dominate global growth. Even with a few roadblocks and detours along the way, continued investment in Asia over the next few years will very likely result in the region establishing a stronghold on the global economy for years to come.