The fundamentals backing East Asia

Discover the Unmatched Potential of East Asia: The New Economic Powerhouse

Just as the United States experienced an unprecedented boom after World War Two (Pruitt, 2020), East Asia, led by China, is witnessing a similar surge in growth and prosperity. This region’s rapid rise offers incredible investment opportunities that simply cannot be ignored.

Some key indicators that demonstrate East Asia’s impressive ascent include

1. A Massive Share of Global GDP:

East Asia’s share of global GDP currently stands at 44% and is projected to surpass 50% by 2030 (World Economics), thanks in large part to China’s remarkable economic growth.

percentage share of global gdp

2. Cumulatively Larger GDP:

In 2021, East Asia’s combined GDP reached $23.9 trillion, exceeding the United States’ $23.3 trillion (World Bank, 2022).

China urbanization

The ongoing urbanization trend in China is expected to unlock a significant amount of disposable income, thereby boosting the nation’s economy. As millions of Chinese citizens migrate from rural areas to urban centers, they are exposed to better job opportunities and higher wages. This increase in income levels will result in a surge of consumer spending, as newly-urbanized individuals invest in better housing, education, healthcare, and consumer goods. This rise in consumption will, in turn, stimulate economic growth, as businesses expand to meet the growing demand, creating a virtuous cycle of prosperity in the country.

Urbanization

3. Faster Growth:

China has experienced staggering growth over the past decade, contributing 31.7% to global GDP growth, compared to the United States’ 9.7% (World Economics, 2023). If this trend continues, China’s GDP could more than double that of the United States by 2030.

China and US Growth Rate

 

4. Higher Savings Rates:

East Asia boasts impressive gross domestic savings rates, with Japan at 24.7%, South Korea at 35.7%, and China at a whopping 45.7% (World Bank, 2021). In comparison, the United States’ savings rate stands at just 17.4%.

Personal Deposits

These unparalleled economic strengths have their roots in East Asia’s historical advantages (Baum, 2021), which include

Characteristics One

Trade Routes

The famed Silk Road enabled China to access technology, goods, and services like no other region. Today, China is the world’s largest exporter and second-largest importer (OEC, 2023).

Characteristics Two

Superior Technology

East Asia’s historical innovations in agriculture have evolved into modern-day leadership in e-commerce, artificial intelligence, and fintech (Sedik, 2018).

Characteristics Three

Efficient Taxation

China’s long-standing civil service system has allowed for effective tax collection and revenue generation (Jarrett & Huihan, 2009), with modern protocols on par with Western standards.

Characteristics Four

Skilled Workforce

East Asia’s rigorous education systems have produced a class of highly skilled professionals, with seven of the world’s top ten education systems located in the region (IMF, 2018).

Don’t miss out on the boundless opportunities presented by East Asia’s meteoric rise. Embrace the future by investing in the most populated and fastest-growing region on Earth. Tap into the power of East Asia’s thriving economies and secure your place at the forefront of this exciting new era of economic growth.

References:

  • Pruitt, S. (2020). United States Post-World War II Economic Boom. History.com.
  • World Economics. (n.d.). Global Growth Tracker.
  • World Bank. (2022). World Bank Open Data.
  • World Bank. (2021). World Bank Open Data.
  • Baum, J. (2021). The Rise of East Asia.
  • Sedik, T. (2018). The Role of East Asia in the Global Technology Landscape.
  • Jarrett, J., & Huihan, L. (2009). The Evolution of Chinese Taxation and Revenue Generation.
  • International Monetary Fund (IMF). (2018). Education Quality in the East Asia Region.