Asia’s economic footprint, in particular Emerging Asia’s, has grown significantly. Asia’s growth rate is also higher than other regions, accounting for about half of global growth last year.
While the region’s future growth may be slower as economies mature and populations age, it will still in aggregate likely outpace that of developed and emerging economies outside of Asia. Three themes will underpin Asia’s potential.
First, continued urbanisation and middle class growth in the emerging economies. Second, continued investments in infrastructure, human capital and education. Third, deeper regional integration, as well as the further opening up of its capital markets to foreign investors. Even though globalisation may progress more slowly going forward, together with regional integration, it is expected to support Asia’s growth story over the longer term.