Logo of Phnom Penh Post newspaper Phnom Penh Post - Asia set for huge economic strides



Asia set for huge economic strides

Content image - Phnom Penh Post
China is set to overtake the US to become the world’s largest economy by 2032, according to the World Economic League Table. afp

Asia set for huge economic strides

Asian economies will witness significant growth in the next 15 years, according to a new analysis.

China is set to overtake the US to become the world’s largest economy by 2032, according to the World Economic League Table, published annually by the Centre for Economics and Business Research, or CEBR, in London.
The table tracks the size of economies over the next 15 years.

It predicts that three of the top five global economies by 2033 will be Asian, with China in top position, India third and Japan fourth. The US will be second and Germany fifth.

Other Asian economies will rise during this period, with South Korea becoming the 10th largest, Indonesia 12th, Thailand 21st, the Philippines 22nd, Bangladesh 24th and Malaysia 25th, all making the top 25.

“Despite global uncertainty and tightening in US monetary policy, which have pushed down some of the emerging market currencies, the 21st century is still likely to be the Asian century,” said Douglas McWilliams, CEBR deputy chairman and founder.

China is now the world’s second-largest economy, while its per capita income is still only about one-fifth of the average in areas with high incomes.

With the US economy growing faster than expected, the stage at which China takes over top spot has been put back two years from 2030, which was forecast by the World Economic League Table in 2017.

The new analysis indicates that China’s Belt and Road Initiative could be an important growth driver. Infrastructure spending is set to increase from $11.5 billion, or 13.5 per cent of global GDP last year, to $27.4 billion, or 15.5 per cent, by 2032.

“We think the initiative will be seen as one of the world’s great transformational projects,” McWilliams said.

Singaporean academic Kishore Mahbubani said it is clear that Asia is on the ascendancy, with China’s economy growing at an average of 9.5 per cent over the past three decades and India’s by 6.6 per cent.

“For the past three decades, several Asian countries have done exceptionally well. There is no doubt that this momentum will continue,” he said.

David Morris, chair of the United Nations Asia Pacific Business Forum, agrees that Asia is now vitally important to the global economy.

“We are in the midst of the biggest global economic shift in memory, with East Asia now driving growth in the world economy,” he said.

The report also suggests that the United Kingdom could be hit hard by Brexit this year, with the chance of it losing its 5th place ranking to France.

But it concludes that even if the UK lost Scotland and Northern Ireland as a result of Brexit fallout, the new country, comprising just England and Wales, would overtake France by 2026.

This is because it would have a more dynamic economy than that of France, which would still be handicapped by a bloated public sector and high taxes.

“There could be many benefits as well as costs from leaving the EU,” McWilliams said. “The UK can move out of its comfort zone of trading with the EU and increase trade with the world, including China.” CHINA DAILY/ANN

MOST VIEWED

  • South Korea’s first lady brings hope to ill boy

    South Korea’s first lady Kim Keon-hee – wife of current president of the Republic of Korea, Yoon Suk Yeol – met with a 14-year-boy with congenital heart disease during her trip to the Kingdom for the ASEAN Summit. After their meeting it was announced that the

  • Hun Sen gets Covid, shuns G20, APEC summits

    Prime Minister Hun Sen said he has tested positive for Covid-19 in Indonesia, where he is slated to attend the G20 summit in his capacity of the ASEAN chair. In a social media post addressing the Cambodian public, he said: “Before leaving Cambodia, I always

  • Moody’s sets outlook rating to ‘negative’ for Cambodia

    US global rating agency Moody’s Investors Service Inc on November 15 announced that it downgraded Cambodia’s outlook from “stable” to “negative” and maintained its B2 local and foreign currency issuer ratings. “The negative outlook reflects a deteriorating external position as illustrated by the severe

  • Korean first lady paves way for ill boy’s surgery

    A 14-year-old boy with congenital heart disease who was lucky enough to meet with South Korean first lady Kim Keon-hee may get the chance of a lifetime and receive surgery and treatment at Asan Medical Center in Seoul, South Korea. After seeing his plight, many

  • Hun Sen’s Covid infection caused by ‘weakened antibody’ after summit

    Prime Minister Hun Sen said exhaustion from heavy workload before and during the recent ASEAN Summit may have led to him contracting Covid-19 due to his weakened immune system, while rejecting speculations that the infection was caused by leaders of some countries who did not

  • Kingdom’s rice crowned world’s No1

    Cambodia’s Phka Rumduol jasmine variety has been crowned the World’s Best Rice for the fifth time at the TRT (The Rice Trader) World Rice Conference in Phuket, Thailand on November 17, according to leaders of the Kingdom’s apex rice industry body. Phka Rumduol