As we reflect on the recent commentary surrounding China’s post-covid recovery, the clear picture for the future becomes more evidently far-reaching. Recent studies have shed light on five reasons why Asia is set to dominate global growth. By 2050, the world’s seven largest economies will prominently feature four from the Asian region. China is expected to be the largest economy in the world at $58.5 trillion, followed by India at $44.1 trillion, Japan at $6.3 trillion and Indonesia at $6.1 trillion.
In addition to their exceptional economic strength, Asia is also set to benefit from population growth. By 2025, the total population is predicted to exceed 4.5 billion people; an impressive 40% of total global population. As such, a large, concentrated consumer base is expected to drive significant demand for goods and services, providing the perfect climate for growth.
The region’s strategic geographical location is also one which many nations are expected to capitalize upon. Acting as a bridge between the East and West, Asia is essentially a well-thriving hub of cultural and economic exchange. From tourism to investment, the inflow of transactions into the region is expected to significantly drive up development.
Furthermore, the region is set to gain an educational and political advantage, as Asia’s talent pool is forecasted to increase threefold by 2030, with nine in ten students educated in tertiary education. The region’s political power is also projected to strengthen with China’s Belt Road Initiative, in which their government is investing heavily in institutions and infrastructure.
Finally, Asia is on the forefront of technological innovation. In countries such as China and South Korea, extensive investment into digital technologies has resulted in a greater penetration of the internet and burgeoning digital economies. Coastal cities are already beginning to revolutionize their cities via the development of smart cities and the systematic attempts to innovate.
In conclusion, all five of these factors provide a deep insight into the region’s positive future outlook. With its impressive economic leverage, growing population numbers, geostrategic location, improved educational and political status and its cutting-edge technological advances, it is easy to understand why Asia is projected to lead global growth in the years to come. Aside from the immediate benefits, foreign investors should pay close attention to the region if they wish to secure a part in its success.