rediff.com
News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

Rediff.com  » Business » 7 Asian nations = 45% global GDP by 2050
This article was first published 12 years ago

7 Asian nations = 45% global GDP by 2050

Last updated on: May 4, 2011 12:07 IST


Photographs: Issei Kato/Reuters Chandra Shekhar in Hanoi

The engines of Asia's re-emergence - India, China and five other economies -- will account for 45 per cent of the global GDP by 2050, according to a report by the Asian Development Bank (ADB).

"Asia's rise will be led by China, India, Indonesia, Japan, the Republic of Korea, Malaysia, and Thailand," the ADB's report, 'Asia 2050 - Realising the Asian Century', said.

In 2010, these seven economies had a combined total population of 3.1 billion, or 78 per cent of Asia, and a GDP of $14.2 trillion.

"These seven economies alone will account for 45 per cent of the global GDP," the report said.

...

7 Asian nations = 45% global GDP by 2050


Photographs: Ian Waldie/Reuters

The report compares the potential outcomes for Asia under two competing scenarios - the 'Asian Century' and the 'Middle Income Trap'.

In the more optimistic Asian Century scenario, the region's gross domestic product (GDP) would soar to $148 trillion and account for 51 per cent of global output in 2050.

On a purchasing power parity basis, GDP per capita in Asia would rise to $ 45,800, compared with the projected 2050 global average of $ 36,600, as per the report.

It said that by the middle of this century, an additional three billion Asians could enjoy higher living standards, but only "if Asia sustains its present growth momentum".

...

7 Asian nations = 45% global GDP by 2050


The report released on the second day of ADB's annual meeting further said that as the global economy's centre of gravity shifts toward Asia, the region could account for about half of global output in 2050, up from the current 27 per cent.

Asia is also likely to contribute half of global trade and investment. The report, however, cautioned that major Asian economies should ensure they do not fall into the middle-income trap, which could inhibit the growth of emerging markets.

The alternative scenario assumes that Asia's fast-growing economies "China, India, Indonesia, and Vietnam will fall into the middle income trap" of slowing growth rates and stagnating income levels over the next 5 to 10 years, it said.

If these events occur, Asia would account for only 32 per cent, or $ 61 trillion, of the global GDP in 2050, it said.

 

© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.