Which Asian economies are set to boom within the next decade?
Asia is a hub of some of the world’s fastest-growing economies, and many Asian countries in the region are anticipated to see significant growth in the upcoming years. Although the COVID-19 epidemic led to some economic turbulence in the region, overall Asia is well-positioned for growth over the coming decade. We will examine some of the Asian economies that are predicted to grow rapidly in the next ten years in more detail in this post.
Asian countries that have a potential bloom
Before we dive into specific countries, it is worth noting that economic growth is never guaranteed, and there are always risks involved. Political stability, regulatory environment, and market access are crucial considerations for investors and companies trying to take advantage of growth prospects in Asia. It’s also critical to consider the challenges that could arise, such as natural disasters, geopolitical unrest, and currency fluctuations.
Many Asian countries are centers for financial activities like trading stocks and Foreign exchange markets. Tokyo for example is one of the trading sessions for currency markets. This makes it attractive to invest in Asian economies by buying their currencies. But investing in foreign economies often comes with FX exposure risks, since you are more often going to invest in Vietnamese dong when investing in Vietnam rather than in USD or another currency. While this is not exactly the same as the risk reward ratio in currency trading since your investments aren’t likely to be leveraged, it is still important to understand the FX exposure when investing in these countries. This said, being the center of financial activities makes Japan a good candidate to continue being stable for the upcoming decade. More potential booming Asian countries are listed below.
Being the world’s second-largest economy and experiencing rapid economic growth are the main characteristics of China. Despite challenges like higher debt levels and a slowing economy due to the pandemic, China managed to get back to pre-Covid manufacturing growth. The country is expected to continue strong growth, and the Chinese government has been making significant investments in infrastructure and technology. The main logistic means in China are its long railways and ports, making it easy to transport enormous amounts of produced goods and products. The country is positioning itself as the global leader in infrastructure and technology investments. Also, China’s middle class is large, and it is growing, enlarging the consumer market and indicating strong sustained growth for many years to come. China always plans, and currently, they have a plan for the next 100–150 years which makes it highly likely that China never stops economic growth and development.
India is the world’s fifth-largest economy with a large, growing population. The country has been undergoing economic reforms in recent years, and it is expected to experience strong growth in the next decade, too. One of the reasons why India is going to rise is its growing number of educated young workforce and the country has been making efforts in technology and innovation. There are countless startups and the government is supporting them through various funding rounds. India’s domestic market presents opportunities for business that are hard to ignore.
Indonesia is the fourth most populous country in the world. With the large and growing domestic market, the country has been making significant investments in infrastructure like China, and it too is expected to experience strong growth in coming years. Additionally, Indonesia is also a member of the Association of Southeast Asian Nations (ASEAN), which creates opportunities for businesses looking to access the broader Southeast Asian markets.
Vietnam has emerged as one of the fastest-growing economies in Southeast Asia during these years. The country has a large young workforce population and is attracting a significant amount of foreign investments. Like other countries that are expected to grow, Vietnam, too, is investing in infrastructure and is focusing on manufacturing and exports.
The Philippines similarly to other countries we have mentioned is experiencing steady growth and its government took efforts to improve infrastructure and attract foreign investment. The country also has a large and growing population, further supporting its economy with a growing workforce. The country is a member of the ASEAN too, sharing opportunities from the association’s projects.
Being home to some of the world’s fastest-growing economies, Asia is the region that is predicted to experience a significant economic boom for the next decade. While economic growth is never guaranteed and certain challenges like geopolitical stability, currency fluctuations, regulatory environment, market access, and natural disasters still pose a threat to the region’s businesses, it is still much more likely that many Asian countries are about to stand strong and continue to grow. The list of Asian countries that are expected to grow the most during the next decade include
- China-the world’s second-largest economy and significant efforts to enlarge its economy and international positioning
- India, the world’s fifth-largest economy, and a growing number of the educated young workforce
- Indonesia, a member of ASEAN and one of the growing economies, has a high chance of booming
- Vietnam with its large domestic market and significant investments in infrastructure, export, and attraction of foreign investments
- The Philippines – with steady growth, improving infrastructure, and a large and growing population
These Asian countries are going to experience economic growth, and as their investments in infrastructure and innovation start bringing fruits, we are likely going to see Asia shine in the next decade.