Asian Decade: Economies Set to Dominate 7% Growth During 2020s

Asia continues to become the world’s main economic driver as projections for the next decade see five of the seven rapidly growing economies in the Asian region, according to a United Kingdom-based Standard Chartered (SC) report. 

RELATED:
One Belt, One Road: China’s Grand Take on Economic Globalization

“Faster growth not only helps to lift people more quickly out of absolute poverty, but is also usually accompanied by better health and education, as well as a wider range of -- and better access to -- goods and services,” Madhur Jha, SC’s India-based head of thematic research, and Global Chief Economist David Mann write on the report. 

India, Bangladesh, Vietnam, Myanmar, and the Philippines will be part of the exclusive list of economies expected to sustain growth rates of around seven percent in their Gross domestic product (GDP). On average, this will mean a threefold increase in GDP per capita, which will result in higher incomes for the whole of the population. The African countries of Ethiopia and Cote d’Ivoire are also part of the list. 

“Higher incomes resulting from faster growth also usually reduce socio-political instability and make it easier to introduce structural reforms, creating a virtuous cycle,” the authors explain. 

One notable absence is China, after appearing on the list for almost four decades. The recent slump seen in the Chinese economy is mainly due to higher per-capita incomes and a slowing of demographic indicators. However, China seems to recover, government figures last month predicted economic growth of between 6.5 percent in 2019, as large commercial and infrastructure projects are underway.

These economic and foreign policy projects aim to strengthen infrastructure, trade, and investment links between China and some 65 other countries that account collectively a combined GDP of US$23 trillion per year about 30 percent of the global GDP, 62 percent of the population, and hold most of the major trade hubs for the world’s economy. 

On January 2019, Standard Chartered predicted that as soon as 2020, the Asian giant will take over as the world’s most powerful economy, currently held by the United States, and before the end of the decade (2030), India will likely also surpass the U.S.