The next global economic expansion would be dominated by Asia as most of the prominent economies of the continent would grow at nearly 7 per cent in the coming years, a global report said.
The next global economic expansion would be dominated by Asia as most of the prominent economies of the continent would grow at nearly 7 per cent in the coming years, a global report said. India, Bangladesh, Vietnam, Myanmar and the Philippines would be among the five of the seven fastest-growing economies, with surges in per capita income throughout the 2020s, Bloomberg reported citing a report by Standard Chartered. A 7 percent growth means doubling of GDP every decade. Interestingly, Bangladeshis would be richer than Indian by 2030 as it will see its per capita surge to $5700, while India will have its per capita at $5400, according to the study. Vietnam’s per capita income is set to rise the most from $2,500 in 2018 to $10,400 in 2030, the report said.
The second largest economy in the world, China, doesn’t find a place on the list, implying slower economic growth and higher per capita makes it difficult for the economy to keep growing at the higher rates. Republic of Cote d’Ivoire and Ethiopia are the two countries outside the Asian club mentioned in the report. The economies listed in the 7 percent group tend to have savings and investment rates of at least 20-25 percent, the report added.
The faster rate of growth not only helps in lifting people out of poverty at a fast pace but also provide better education and health as they get access to improved goods and services, the report said. The socio-political instability gets also reduced as a result of higher incomes leading from faster pace of growth,in turn, allowing for easier introduction of introduce structural reforms, the report also noted.
Even though economic growth doesn’t mean solution to all problems of economy, it may still help in bringing positive impact to the different sectors, it added.