Asia is now home to the greater part of the world’s population. According to UN data, of the world’s 30 largest cities, 21 are in Asia. By one year from now, Asia will likely end up being home to half of the world's middle class (individuals living in households with every day per capita earnings being between $10 and $100 at 2005 purchasing power parity). Since 2007, Asians have been purchasing a greater number of autos and trucks than people in any other region — by around 2030 they will purchase the same number of vehicles as the rest of the world together.
“Now the continent finds itself at the centre of global economic activity,”- exclaimed Narendra Modi, prime minister of India, during the last annual meeting of the Asian Infrastructure Investment Bank. “In fact, we are now living through what many have termed the Asian Century,” he said. As the “Center of gravity” shifts in geopolitics, Asia is believed to become (if not already) the new driving force of the world economy.
Ian Goldin, an Oxford University professor, has mentioned that China alongside developing countries in Asia are the bleeding edge of economic growth. He expressed his thoughts that the expansion of the world’s second largest economy to stay “robust” at 6% for the following decade, while surrounding emerging markets will intently mirror that. “I think we’re seeing a rebalancing, a historical rebalancing,” said Goldin. “The center of gravity is clearly moving to Asia. This is a good thing. We’ll have more global growth where it’s needed, in developing countries.”
As the Asian economy matures, we are seeing a staggering increase in the size of its middle class. That is rather healthy, because it provides many opportunities for development of many different social projects. The purpose of this Dashboard is to help public and private institutions plan and execute long and medium term programs in this important aspect.
China’s rise to geopolitical powerhouse has been startling in its speed and magnitude. The country now wants strategic space in East Asia, and is no longer willing to play second fiddle to America. The second biggest economy of Asia - India had its own issues to solve. The country’s focus for the last fifty years has been Pakistan, which it violently broke with during the Partition. Struggles over Kashmir, and with China, over territorial disputes in some of the highest places in the world.
The purpose of this Dashboard is to present in depth all those major changes occurring in this full of potential region. The deep analytics in the platform will allow both private and public institutions to get valuable insights regarding major political changes on the continent.
Functioning of Government
Government Effectiveness and Economic Growth
GDP per capita growth
Asia was the continent that recovered the fastest since the global financial crisis from 2007-2008. The average growth rate of the Asian economies exceeded 6% in 2010 (which was more than double that of their Western counterparts).
According to the data for 2019, Oriental countries are still leading the world in terms of economic development with a growth rate of more than 3%. Although, it seems that Eastern ascendence has slowed down for the moment, it is only because of the maturing of the Chinese economy while the other big players like India and Indonesia are still catching up and will surely raise that number.
GDP per capita
Even though Asia lags behind the West in terms of GDP per capita, its huge growth rate is about to change that. There are comparatively fewer countries in Asia compared to the West that could be considered developed (according to the United Nations) and those are the four Asian Tigers plus the industrial giant of Japan.
The gap between the richest and poorest countries in Asia is staggering. The continent holds the state with one of the highest GDPs per capita in the world - Qatar and also one of the world’s poorest and most closed societies - North Korea.
That shows that Asia is the land of extremes, but unlike Africa it possesses many of the most technologically progressive countries like South Korea, Japan and Taiwan. More so, the dazzling growth of the Chinese economy is set to transform global politics in the 21st century.
Gross National Income
Trading and Cooperation Development
The graph shows that export within Asia is much larger than other global regions and despite political tensions, the level of economic interconnectivity remains very high. The strengthening of the trade and investment links on the continent are improving the region’s resilience to uncertainties in the global trade environment. Asia’s fast recovery rate is helping it to maintain strong growth momentum amid the ongoing crisis and its continued integration and cooperation will underpin regional industrial and financial strength.
Import Export Data by Countries
Economic Power Distribution
The Nominal Gross Domestic Product (GDP) sector composition shows some very important points regarding the structure of the local economy.
In developed countries, the services are the biggest part of the GDP due to the high industry automatization rates. The opposite is true for the developing world where, due to the lack of economic industrialization, agriculture takes the first place.
According to data from the United Nations Statistics Division, the People’s Republic of China accounted for 28% of global manufacturing output in 2018. That gives the country more than 10% advantage ahead of the US, which used to own the world’s largest manufacturing sector until in 2010, China took over the leading position. As the Chinese economy continues to industrialize, the percentage of people working in the sector will surely go down, something typical for post-industrial societies.
Amount of leading banks and investment companies by country
The first chart in this section shows cross-border Merger & Acquisition activity, which is a tactic used to rapidly expand to new markets on a global scale. During 2018, the United States was the leading acquiring country for cross-border M&A activity with over 4.7 thousand deals, accounting for almost 50% of the total cross-border deals made during 2018. The United Kingdom (UK) and France were the next largest acquiring nations with 775 and 448 deals respectively.
On the opposite side, the following graph shows the Foreign Direct Investment (FDI) outpourings which is an interest as a controlling proprietorship in an organization in one nation, legitimately situated in another.
The hint of the speculation doesn't impact the definition: the venture might be made either "inorganically" by purchasing an organization in the objective nation or "naturally" by growing the activities of the current business in that state.
The chart shows that the first two places belong to Asian countries. The difference between the two charts is that by definition, Foreign Direct Investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, and intra company loans. So, therefore, M&A activities are only a specific part of FDI (only special types of contracts), while all Foreign Direct Investments have many more aspects.
Which Industry Boasts the Most Billionaire Wealth?
With Beijing as its most rapidly growing economic region, Asia became the place of residence of a large number of billionaires, such as Masayoshi Son, Mukesh Ambani, Jack Ma, Ma Huateng and others.
According to Knight Frank's Wealth Report this region is the largest club for wealthy men, with their number set to increase to more than 1,000 individuals by 2023, accounting for more than one third of the global billionaire population of 2,696. According to the latest data, India leads in terms of forecast UHNWI (Ultra-high net-worth individuals). The country is expected to achieve a growth of 39% growth, followed by the Philippines (38%) and China (35%). Of the 59 countries and territories included in the wealth forecasts, eight top-ten states are from Asia.
The so-called Fourth Industrial Revolution has given opportunity for many countries to compete in industries requiring less investment in terms of capital and labor. The rising tigers of the East are ranking very high in terms of number of startups per capita and all that can be contributed to their entrepreneurship-nurturing environment. Out of the top ten most startup friendly countries in the world (Hansen&Company, 2020), three are located on the Asian continent. Singapore, South Korea and Japan fall into that category, with the later being ranked as first.
As more and more Asian states go from developing into developed, we will likely see them put even higher on the global startup stage. With their much younger and ambitious population, growing domestic markets and ever-increasing R&D spending, they are destined to lead the world in a number of innovative sectors.