India will lead the next wave of Asian growth, claims Morgan Stanley
New Delhi| Economies like India are set to drive Asia’s next wave of growth as China’s contribution to the region’s growth is set to decline. The Morgan Stanley report said India will lead the next wave of growth in Asia along with other emerging Southeast Asian economies like Indonesia, Philippines and Malaysia.
According to the report, the above four economies are collectively expected to contribute 53 percent of Asia’s nominal GDP growth by 2027. In the time before Corona, there was a contribution of 33 percent. According to the report, the above types of changes occur when demographic changes, policy priorities and countries together reshape the economic landscape of the region. According to the report, the economic size of Asia has increased rapidly in the last few decades. Its nominal GDP has grown from just $2.1 trillion in 1980 to an estimated $3.4 trillion in 2024.
By 2027, Asia’s GDP will be $39 trillion. This will make Asia the fastest growing major economic region. However, its speed may be slower than historical records. This shift in growth drivers reflects changing demographics and evolving government policies.
China’s population is aging and its economy is declining. Young, high-growth economies are playing a big role in Asia. India, Indonesia, Philippines and Malaysia benefit from favorable demographic trends and policies focused on economic expansion. These are increasingly attracting domestic and international investment.
