22 Sep Welcome to the economic powerhouse
ASEAN economies, poised for robust recovery with 6% real GDP in 2021, as per GlobalDataGrowing , confirms that ASEAN has a lot to offer to the global investors.
With a population of over 655 million, GDP at US$ 3 trillion and GDP per capita at US$4849 according to TradingNomics’s Quarter 3-2020 data, ASEAN has become an economic force in Asia and a driver of global growth. With a global look East policy being pursued by the US and Europe, the 10 ASEAN nations have a lot to offer to global investors. ASEAN region is home to 9% of the world’s population and is the 3rd fastest-growing major Indo-Pacific economy in the past decade, after China and India. Singapore has the highest GDP per capita at over US$ 63,987 followed by Brunei at US$ 27,871.
The ASEAN region has sustained GDP growth at around 5% since 2006. Most economists expect the strong domestic demand spurred by rising income levels, low inflation and remittances to boost the growth in ASEAN economies and offset near term weak export growth.
ASEAN countries have a growing middle class that has helped boost demand for a wide range of products including electronics, mobile phones and gadgets, cars, and services related to education, health, and leisure. The region has made significant progress in reducing the overall poverty rate.
Over US$3.4 trillion in global trade transits through the ASEAN region each year making it a critical hub for cross border trade. ASEAN is the United States’ fourth-largest trading partner and the annual US exports in goods and services to the region total over US$ 105 billion. It also receives the largest chunk of outgoing investment from the EU, at 24% and is the Number 1 destination for US investment in the Indo-Pacific region at US$329 billion.
ASEAN offers an infrastructure network that allows businessmen faster connections with countries within and outside the region. The region has over 41 international airports and 57 major ports. Its road network extends beyond urban area and the public transportation system in some ASEAN countries is comparable to the best in the world.
From its start, acceleration of economic growth in the region was ASEAN’s main purpose, along with social progress and cultural development. Regional collaboration was sought for the greater utilisation of agriculture and industries, the expansion of trade, improvement of transport and communications facilities. ASEAN’s end-goal was and is to raise its people’s living standards.