Economy of Asia
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|
Statistics | |
---|---|
Population | 4.7 billion[1][2] (60% of world) |
GDP | |
GDP rank | |
GDP growth | 4.2% (2023 est.)[5] |
GDP per capita | |
GDP per capita rank | |
5.7% (2023 est.)[8] | |
Millionaires (US$) | 10.7 million (2022)[9] |
Public finances | |
93.5% of GDP (2023 est.)[10] | |
Most numbers are from the International Monetary Fund. IMF Asia Datasets All values, unless otherwise stated, are in US dollars. |
World economy |
---|
The economy of Moreover, Asia is the site of some of the world's longest modern economic booms.
As in all world regions, the wealth of Asia differs widely between, and within, states. This is due to its vast size, meaning a huge range of different cultures, environments, historical ties and government systems. The largest economies in Asia in terms of PPP gross domestic product (GDP) are China, India, Japan, Taiwan,Indonesia, Turkey, South Korea, Saudi Arabia, Iran, Thailand, and Pakistan, Bangladesh and in terms of nominal gross domestic product (GDP) are Japan,Taiwan, South Korea, China, India, Indonesia, Saudi Arabia, Turkey, Bangladesh, Thailand and Iran.
Total wealth (as well as overall GDP) is mainly concentrated in East Asia, South Asia and Southeast Asia.[12][13][14] Israel and Turkey are also two major economies in West Asia. Israel (entrepreneurship on diversified industries) is a developed country, while Turkey (founding member of OECD) is an advanced emerging country. Asia, with the exception of Japan (heavy industry and electrical sophistication), South Korea (heavy industry and information and communication technology), Taiwan (heavy industry and hi-tech parts manufacturing), Hong Kong (financial industry and services) and Singapore (high-tech manufacturing, biotechnology, financial and business services and tourism) in recent years, is currently undergoing rapid growth and industrialization. China (manufacturing and FDI-led growth[15]) and India (commodities, outsourcing destination and computer software) are the two fastest growing major economies in the world.
East Asian and
List of Asian countries by GDP
This is an alphabetically sorted list of Asian countries, with their factual and estimated gross domestic product data by the International Monetary Fund.[19]
territory | GDP nominal millions of USD (2023) |
GDP nominal per capita USD (2023) |
GDP PPP millions of USD |
GDP PPP per capita USD |
Location | |
---|---|---|---|---|---|---|
Average | 38,435,000 | 8,388 | 84,727,000 | 18,046 | Asia | |
Afghanistan | 14,939 | 611 | 76,486 | 2,094 | South Asia | |
Armenia | 24,540 | 4,741 | 32,909 | 11,083 | West Asia | |
Azerbaijan | 77,392 | 7,165 | 187,260 | 18,615 | West Asia | |
Bahrain | 44,944 | 29,103 | 76,951 | 50,931 | West Asia | |
Bangladesh | 446,349 | 2,735 | 1,350,000 | 7984 | South Asia | |
Bhutan | 2,686 | 3,491 | 8,199 | 9,876 | South Asia | |
Brunei | 15,153 | 79,816 | 35,920 | 80,383 | Southeast Asia | |
Cyprus | 32,032 | 30,663 | 38,055 | 42,956 | West Asia | |
Myanmar | 74,861 | 1,285 | 355,609 | 6,707 | Southeast Asia | |
Cambodia | 30,943 | 1,752 | 76,934 | 4,664 | Southeast Asia | |
China | 17,700,899 | 14,096 | 27,308,857 | 19,503 | East Asia | |
Hong Kong | 385,546 | 51,168 | 490,880 | 64,927 | East Asia | |
Georgia | 30,023 | 5,618 | 45,398 | 12,227 | West Asia | |
India | 3,732,224 | 2,650 | 13,200,000 | 9,073 | South Asia | |
Indonesia | 1,417,387 | 4,691 | 3,737,484 | 13,998 | Southeast Asia | |
Iran | 366,438 | 4,234 | 1,470,661 | 17,661 | West Asia | |
Iraq | 297,695 | 5,883 | 705,059 | 18,025 | West Asia | |
Israel | 521,688 | 53,196 | 354,197 | 39,121 | West Asia | |
Japan | 4,230,862 | 33,950 | 5,665,980 | 45,411 | East Asia | |
Jordan | 50,022 | 4,851 | 97,161 | 9,648 | West Asia | |
Kazakhstan | 259,292 | 12,968 | 537,664 | 28,849 | Central Asia | |
North Korea | 28,500 | 654 | N/A | N/A | East Asia | |
South Korea | 1,709,232 | 33,147 | 2,319,585 | 44,740 | East Asia | |
Kuwait | 159,687 | 32,215 | 312,100 | 66,386 | West Asia | |
Kyrgyzstan | 12,681 | 1,830 | 25,915 | 4,056 | Central Asia | |
Laos | 14,244 | 1,879 | 58,091 | 8,109 | Southeast Asia | |
Lebanon | 37,945 | 4,003 | 91,286 | 15,049 | West Asia | |
Macau | 38,480 | 54,296 | 77,360 | 115,913 | East Asia | |
Malaysia | 430,895 | 13,034 | 1,078,537 | 32,880 | Southeast Asia | |
Maldives | 6,977 | 17,559 | 8,667 | 23,311 | South Asia | |
Mongolia | 18,782 | 5,348 | 47,217 | 14,308 | East Asia | |
Nepal | 41,339 | 1,353 | 94,419 | 3,318 | South Asia | |
Oman | 108,282 | 21,266 | 203,959 | 47,365 | West Asia | |
Pakistan | 340,636 | 1,471 | 1,100,000 | 5,230 | South Asia | |
Philippines | 435,675 | 3,859 | 1,110,810 | 9,893 | Southeast Asia | |
Qatar | 235,500 | 81,968 | 365,835 | 132,886 | West Asia | |
Saudi Arabia | 1,069,437 | 32,568 | 1,898,511 | 55,704 | West Asia | |
Singapore | 497,347 | 87,884 | 585,055 | 103,181 | Southeast Asia | |
Sri Lanka | 74,404 | 3,342 | 304,826 | 13,897 | South Asia | |
Syria | 19,719 | 925 | N/A | N/A | West Asia | |
Taiwan | 751,930 | 32,339 | 1,300,212 | 55,078 | East Asia | |
Tajikistan | 11,816 | 1,180 | 33,351 | 3,589 | Central Asia | |
Thailand | 512,193 | 7,298 | 1,383,022 | 20,364 | Southeast Asia | |
Timor-Leste | 2,030 | 1,497 | 6,823 | 5,254 | Southeast Asia | |
Turkey | 1,154,600 | 13,384 | 2,346,576 | 28,264 | West Asia/Europe | |
Turkmenistan | 81,822 | 12,934 | 121,885 | 20,410 | Central Asia | |
United Arab Emirates | 509,179 | 50,602 | 746,350 | 69,434 | West Asia | |
Uzbekistan | 90,392 | 2,509 | 297,222 | 8,999 | Central Asia | |
Vietnam[20] | 433,356 | 4,122 | 1,248,986 | 12,590 | Southeast Asia | |
Yemen | 21,045 | 891 | 72,171 | 2,280 | West Asia |
History
Economic development
Ancient and medieval times
Pre–1945
Prior to World War II, most of Asia was under
Japan in particular managed to develop its economy due to a reformation in the 19th century. The reformation was comprehensive and is today known as the
At the same time, Southeast Asia was prospering due to trade and the introduction of various new technologies of that time. The volume of trade continued to increase with the opening of the Suez Canal in the 1860s. Manila had its Manila galleon where in products from the Philippine islands and China were traded with Spanish America and Europe from 1571 to 1815.[29] The Spanish colony of the Philippines was the first Asian territory to trade with the Americas, from Manila to Acapulco. The route continued overland across present-day Mexico to Veracruz on the Atlantic coast, then to Havana and Seville, forming the first global trade route. Silk, porcelain, ivory, tobacco, coconut and maize were some of the goods exported from Asia to the Americas and Europe, through the Philippines.
Significant de-industrialisation took place in South Asia during its first few decades of British rule in the 1800s. Extreme poverty doubled to over 50% and famines increased significantly during the colonial era.[33]
In 1908,
In the early 1930s, the world underwent a global economic depression, today known as the Great Depression. Asia was not spared, and suffered the same pain as Europe and the United States (except for the Soviet Union). The volume of trade decreased dramatically all around Asia and indeed the world. With falling demand, prices of various goods starting to fall and further impoverished locals and foreigners alike. In 1931 Japan invaded Manchuria and subsequently the rest of China and south-east Asia in what eventually became the Asia-pacific leg of World War II.[35]
1945–1990
Following World War II, the People's Republic of China and the Republic of India, which accounted for half of the population of Asia, adopted socialist policies to promote their domestic economy. These policies limited the economic growth of the region. They are being abandoned in India and reformed in China. In contrast, the economies of Japan and the
One of the most pronounced Asian economic phenomenons during this time, the
Another amazing economic success story is that of South Korea's, also referred to as the
Taiwan and Hong Kong experienced rapid growth up till the 1990s. Taiwan became, and still remains one of the main centers of consumer electronics R&D as well as manufacturing. However, unlike in Japan and South Korea, the bulk of Taiwan's economy is dependent on small to medium-sized businesses. Hong Kong, on the other hand, experienced rapid growth in the financial sector due to liberal market policies, with many financial institutions setting up their Asian headquarters in Hong Kong. Until 2021, Hong Kong was ranked as one of the world's freest economies by The Heritage Foundation and The Wall Street Journal, and it remains one of the world's top five leading financial centers.[40]
In Southeast Asia, economic development was fueled by the growth of the
This period was also marked by military conflict. Wars driven by the Cold War, notably in Vietnam and Afghanistan, wrecked the economies of these respective nations. When the Soviet Union collapsed in 1990–91, many Central Asian states were cut free and were forced to adapt to pressure for democratic and economic change. Also, several of the USSR's allies lost valuable aid and funding.[43]
1991–2007
The
Meanwhile, South Korea, Taiwan, Hong Kong and Singapore emerged as the Four Asian Tigers with their GDPs growing well above 7% per year in the 1980s and the 1990s. Their economies were mainly driven by growing exports.[44] The Philippines only began to open up its stagnated economy in the early 1990s.[45] Vietnam's economy began to grow in 1995, shortly after the United States and Vietnam restored economic and political ties.[46]
Throughout the 1990s, the manufacturing ability and cheap labor markets in Asian developing nations allowed companies to establish themselves in many of the industries previously dominated by companies from developed nations. By the dawn of the 21st century, Asia became the world's largest continental source of
At the end of 1997, Thailand was hit by currency speculators, and the value of the Baht along with its annual growth rate fell dramatically. Soon after, the 1997 Asian financial crisis spread to the ASEAN region, South Korea and other countries in Asia, resulting in great economic damage on the affected countries (but with Japan and China both largely escaping the crisis). In fact, some of the economies, most notably those of Thailand, Indonesia, and South Korea actually contracted. By 1999, most countries had already recovered from the crisis.[48] In 2001, almost all economies in both Europe and Asia were adversely affected by the September 11 attacks, with Indonesia and Japan was hardest. Both continents quickly recovered from the attacks in United States after more than a year.[49]
In 2004, parts of Sumatra and South Asia were severely damaged by
The economy of Japan suffered its worst post-World War II economic stagnation set in the early 1990s (which coincided with the end of Cold War), which was triggered by the latter event of the 1997 Asian financial crisis. It, however, rebounded strongly in the early 2000s due to strong growth in exports, although unable to counteract China in 2005 after China gradually surpassed it as the largest economy in Asia.[51]
From 1995 to 2005, share of Asian foreign exchange reserves had risen from 46 percent to 67 percent. From 2002 to 2005, central banks in Asia alone accounted for three-quarters of total global currency reserve buildup.[52]
2008–2019
The
The Arab Spring and the ensuing civil unrests since 2011 had caused economic malaise in Syria, Lebanon and Yemen, amongst the most adversely affected nations in the Middle East. At the same time, in the early 2010s, Iraq, Saudi Arabia, the United Arab Emirates and Kuwait registered their highest GDP growths on record in the years that followed due to increased oil prices and further diversification of exports, as well as rising foreign exchange reserves.[54]
In 2013, in a once-in-a-decade party leadership reshuffle in
The Philippines, however, managed to grow at rates at par with China in the period 2012–2013, and became the world's fastest growing emerging market economy in the second half of the 2010s decade, overtaking Malaysia in 2017 as the fourth largest economy overall in Southeast Asia. It also recovered after getting hit by Typhoon Haiyan, the strongest storm on record to make landfall, in November 2013, which killed at least 5,200 and displacing millions more.[55]
On September 29, 2013, China opened the Shanghai Free-Trade Zone. This free trade zone allows international trade to be conducted with fewer restrictions and lower customs duties. The zone is tax free for the first ten years to encourage foreign direct investment (FDI) with a 'negative list' used to regulate in which fields foreign investments are prohibited.[56][57] In 2018, India has overtaken Japan as the second largest economy in Asia and the third largest overall in the world, while China has overtaken the U.S. in terms of purchasing power parity or GDP (PPP) in the world, marking the first time in almost 2 centuries that any country outside the Americas and Europe has taken the top spot globally.
2020–present
The Asian economies were affected by the demographic shifts between
Future
Asia's large economic disparities are a source of major continuing tension in the region.[61] While global economic powers China, Japan, India, South Korea, Taiwan continue powering through, and Indonesia, Malaysia, Philippines, Thailand, Vietnam, Bangladesh and Sri Lanka have entered the path to long-term growth, regions right next to these countries are in severe need of assistance.
Given the enormous quantity of cheap labor in the region, particularly in China and India, where large workforces provide an economic advantage over other countries, the rising standard of living will eventually lead to a slow-down. Asia is also riddled with political problems that threaten not just the economies, but the general stability of the region and world. The nuclear neighbours, Pakistan and India, constantly
Another potential global danger posed by the economy of Asia is the growing accumulation of foreign exchange reserves. The countries/regions with the largest foreign reserves are mostly in Asia – China (Mainland – $3,205 billion & Hong Kong – $430.7 billion, April 2023), Japan ($1,253 billion, June 2023), Russia ($599 billion, May 2023), India ($594.8 billion, August 2023), Taiwan ($566.4 billion, July 2023), South Korea ($418.3 billion, August 2023), and Singapore ($326.7 billion, July 2023). This increasingly means that the interchangeability of the Euro, USD, and GBP are heavily influenced by Asian central banks. Some economists in the western countries see this as a negative influence, prompting their respective governments to take action.[63]
According to the
Businesses anticipate that it will take an average of five months for revenues to return to pre-pandemic levels and two months for the workforce to do the same. It is anticipated that Central Asian nations will be more severely impacted. Only 4% of those businesses that were permanently closed anticipate to open again, with the impacted industries' levels of heterogeneity ranging from 3% in the lodging and food services sector to 27% in the retail trade sector.[67][68][69]
Regional variation
Asian countries by GDP
Regional economies of Asia
Economy of East Asia
Economy of South Asia
Recent reforms in China
Following a Third Plenum of the
The reforms will make financial loan systems more flexible encouraging increased economic involvement of private firms. Additionally, state-owned enterprises will be required to pay higher dividends to the government. The benefits of this will go to Social Security. Reform also allows farmers to own land for the first time ideally encouraging farmers to sell their land and move to cities which will boost consumerism and increase urban work force.[73]
On April 10, 2014, China Securities Regulatory Commission (CSRC) and Securities and Futures Commission (CSRC) made a Joint Announcement about the approval for the establishment of mutual stock market access between Mainland China and Hong Kong.[74] Under the ‘Connect Program’, the Stock Exchange of Hong Kong Limited and Shanghai Stock Exchange will establish mutual order-routing connectivity and related technical infrastructure to enable investors to invest in Chinese equities market directly. On November 17, 2014, the program officially launched with the approvals from Beijing.[75]
The 'Connect Program' is an initiative with significance to both Hong Kong and Mainland. It brings another opportunity for the growth of the Hong Kong securities market. More importantly, it provides, for the first time, a feasible, controllable and expandable channel to investors to invest in both Hong Kong and Mainland, in addition to current schemes including QDII, QFII, AND RDFII programs.[76]
Local government's spending plays a critical role in China's fiscal system. Following the 1991 intergovernmental fiscal reform, the central government's share of total fiscal revenue increase from less than 30 percent to around 50 percent in 2012.[77] Local governments are now responsible for infrastructure investment, service delivery and social spending, which together account for about 85 percent of the total expenditure. Without a rule to guide the distribution of intergovernmental expenditure responsibilities, significant levels of risk would be associated with the spending.
China's central administration will impose hard caps on local government borrowing in order to control financial risks from an explosive level. Statistics showed that total debt had reached $3 trillion by the middle of 2013, raising total government debt to 58 percent of GDP. Similar jump occurred in corporate debt as well, which pushed China's overall debt-GDP ratio up to 261% from 148% in 2008. IMF warned that rapid debt run-ups could lead to financial crisis.[78]
The new rules are expected to be combined with broader fiscal reforms aimed at bringing local government tax revenue in line with expenditure. The central government will provide more guidance to local governments in terms of how to manage and invest wisely.
As of 2017, China has the world's second largest economy by nominal GDP at $11.8 trillion. It is the largest manufacturing economy in the world, and is the largest exporter of goods. China is also the world's largest producer and consumer of agricultural products. China is a leading producer of rice, and is a key producer of wheat, corn, tobacco, soybeans, and potatoes, among others. Though thee real estate industry in China has taken, China has had the largest real estate market in the world. China's service sector has doubled in size, accounting for 46% of China's total GDP. In 2011, the Chinese government instituted a five-year plan to prioritize the development of the service economy. The telecommunications sub-sector in China is one of the largest in the world, with over a billion mobile customers. Tencent, the developer of WeChat, is one of the dominating players in the telecommunication sector.[79]
Economic liberalisation in India
The economic liberalisation in India refers to the ongoing economic liberalisation, initiated in 1991, of the country's economic policies, with the goal of making the economy more market-oriented and expanding the role of private and foreign investment. Specific changes include a reduction in import tariffs, deregulation of markets, reduction of taxes, and greater foreign investment. Liberalisation has been credited by its proponents for the high economic growth recorded by the country in the 1990s and 2000s. The overall direction of liberalisation has since remained the same.
Though governments has yet to solve a variety of politically difficult issues, such as liberalising labour laws and reducing agricultural subsidies along with corruptions and fiscal deficits to sustain the growth.
The
The long-term growth prospective of the
India has the one of fastest growing
India's two major stock exchanges,
India is a member of the Commonwealth of Nations, the South Asian Association for Regional Cooperation, the G20, the International Monetary Fund, the World Bank, the World Trade Organization, the Asian Infrastructure Investment Bank, the United Nations and the New Development BRICS Bank.
Successive Indian governments have been advised to continue liberalisation. Even though, in early years India grew at slower pace than China (however, since 2013 India has been growing faster than its northern counterpart in terms of percentage of GDP growth, although China's absolute growth still exceeds India by a large margin). The McKinsey Quarterly states that removing main obstacles "would free India's economy to grow at 10% a year".
There has been significant debate, however, around liberalisation as an inclusive economic growth strategy. Since 1992, income inequality has deepened in India with consumption among the poorest staying stable while the wealthiest generate consumption growth. As India's gross domestic product (GDP) growth rate became lowest in 2012–13 over a decade, growing merely at 5.1%,[15] more criticism of India's economic reforms surfaced, as it apparently failed to address employment growth, nutritional values in terms of food intake in calories, and also exports growth – and thereby leading to a worsening level of current account deficit compared to the prior to the reform period. But then in FY 2013–14 the growth rebounded to 6.9% and then in 2014–15 it rose to 7.3% as a result of the reforms put by the New Government which led to the economy becoming healthy again and the current account deficit coming in control. Growth reached 7.5% in the Jan–Mar quarter of 2015 before slowing to 7.0% in Apr–Jun quarter
By 2050, India's economy is expected to overtake the US economy, putting it behind China in the world's largest economies. Like China, agriculture makes up a large part of the Indian economy. As the Indian economy has grown, agriculture's contribution to GDP has steadily declined, but it still makes up a large portion of the workforce and socio-economic development. India's industrial manufacturing GDP output was the 6th largest in the world in 2015, largely due to petroleum products and chemicals. India's pharmaceutical industry has also grown at a compound annual growth rate of 17.5% over the last 11 years, and is one of India's fastest-growing sub-sectors today. However, the engineering industry in India is still the largest sub-sector by GDP. Perhaps the most exciting development in India is its incredibly fast-growing information technology and business process outsourcing sub-sector. Cities like Bangalore, Hyderabad rival the United States's Silicon Valley in innovation and technological advancement as more and more skilled, tech-savvy students and young professionals are entering the entrepreneurial world.[79]
India's telecommunication network is the second largest in the world by number of telephone users (both fixed and mobile phone) with 1.183 billion subscribers as on 31 May 2019. It has one of the lowest call tariffs in the world enabled by mega telecom operators and hyper-competition among them. As on 31 July 2018, India has the world's second-largest Internet user-base with 460.24 million broadband internet subscribers in the country.
Abenomics in Japan
The Bank of Japan also aimed to raise inflation to 2% in part by buying up short-term government debts. Critics point out that hyperinflation and an unbalanced GDP/debt ration could be negative results of Abenomics. Furthermore, currency changes could aggravate international relations, especially those between China and Japan.[99]
Trade blocs
Association of Southeast Asian Nations
The
The current member countries of ASEAN are
In 2005, ASEAN was instrumental in establishing the East Asia Summit (involving all ASEAN members plus China, Japan, South Korea, India, Australia and New Zealand) which some have proposed may become in the future a trade bloc, the arrangements for which are far from certain and not yet clear.[106]
The
Shanghai Cooperation Organisation
The Shanghai Cooperation Organisation (SCO) is a Eurasian political, economic, and security organisation, the creation of which was announced on 15 June 2001 in Shanghai, China . Its members include China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan, India and Pakistan . The Shanghai Cooperation Organisation Charter, formally establishing the organisation, was signed in June 2002 and entered into force on 19 September 2003.[108] Known as the "Alliance of Asia", it is the world's forefront regional organisation in economic power and political influence, one of the world's strongest military alliances,[109] and the largest regional organisation in the world in terms of geographical coverage and population, covering three-fifths of the Eurasian continent and nearly half of the human population. At present, the SCO is one of the world's most powerful and influential organisations.[110][111][112][113]
Regional Comprehensive Economic Partnership
The
RCEP negotiations were formally launched in November 2012 at the ASEAN Summit in Cambodia.[115] The free trade agreement is scheduled and expected to be signed in November 2020 during the ASEAN Summit and Related Summit in Vietnam.[116] RCEP is viewed as an alternative to the Trans-Pacific Partnership (TPP), a proposed trade agreement which includes several Asian and American nations but excludes China and India.[117]
Asia-Pacific Trade Agreement
The
Asia-Pacific Economic Cooperation
The Asia-Pacific Economic Cooperation (APEC) is a group of Pacific Rim countries who meet with the purpose of improving economic and political ties. Although the initial intention was to create a free trade area covering all membership (which includes China, the United States and Australia, among others) this has failed to materialize.[119] In 2014, APEC members committed to taking a concrete step towards greater regional economic integration by endorsing a roadmap for the Free Trade Area of the Asia-Pacific (FTAAP) to translate this vision into a reality. As a first step, APEC is implementing a strategic study on issues related to the realization of a Free Trade Area of the Asia-Pacific. The study will provide an analysis of potential economic and social benefits and costs, analyze the various pathways towards a Free Trade Area and identify challenges economies may face in realizing this goal.[120]
Gulf Cooperation Council
The Gulf Cooperation Council (GCC), is a regional intergovernmental political and economic union founded in 1981.[121] The current member states of GCC are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.[122]
Closer Economic Partnership Arrangement
The Closer Economic Partnership Arrangement (CEPA) is an economic agreement between the People's Republic of China, the Hong Kong SAR government (signed on 29 June 2003), and the Macau SAR government (signed on 18 October 2003), in order to promote trade and investment facilitation.
The main aims of CEPA are to eliminate tariffs and non-tariff barrier on substantially all the trade in goods between the three, and achieve liberalization of trade in services through reduction or elimination of substantially all discriminatory measures.[123]
Arab League
The
Commonwealth of Independent States
The Commonwealth of Independent States (CIS) is a confederation consisting of 12 of the 15 states of the former Soviet Union, both Asian and European (the exceptions being the three Baltic states).[125] Although the CIS has few supranational powers, it is more than a purely symbolic organization and possesses coordinating powers in the realm of trade, finance, lawmaking and security. The most significant issue for the CIS is the establishment of a full-fledged free trade zone / economic union between the member states, to be launched in 2005. It has also promoted cooperation on democratisation and cross-border crime prevention.
South Asian Association for Regional Cooperation
The South Asian Association for Regional Cooperation (SAARC) is an association of eight countries of South Asia, namely Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and, Sri Lanka.[126] These countries comprise an area of 5,130,746 km2 and a quarter of the world population. SAARC encourages cooperation in agriculture, rural development, science and technology, culture, health, population control, narcotics control and anti-terrorism. Also, a FTA called
Economic sectors
Primary sector
Asia is by a considerable margin the largest continent in the world, and is rich in natural resources. The vast expanse of the former Soviet Union, particularly that of Russia, contains a huge variety of metals, such as gold, iron, lead, titanium, uranium, and zinc.[128] These metals are mined, but inefficiently due to the control of a few state-sponsored giants that make participation difficult for many international mining companies.[129] Nevertheless, profits are high due to a commodity price boom in 2003/2004 caused largely by increased demand in China.[130] Oil is Southwest Asia's most important natural resource. Saudi Arabia, Iraq, and Kuwait are rich in oil reserves and have benefited from recent oil price escalations.[131]
Asia is home to almost five billion people, and thus has a well established tradition in agriculture. High productivity in agriculture, especially of rice, allows high population density of many countries such as Bangladesh, Pakistan, southern China, Cambodia, India, and Vietnam. Agriculture constitutes a high portion of land usage in warm and humid areas of Asia.
Many hillsides are farmed in a terrace method to boost arable land.[132] The main agricultural products in Asia include rice and wheat.[133] Opium is one of major cash crops in Central and Southeast Asia, particularly in Afghanistan, though its production is prohibited everywhere.[134] Forestry is extensive throughout Asia, with many of the items of furniture sold in the developed nations made out of Asian timber. More than half of the forested land in Asia is in China, Indonesia, and Malaysia. China is considered a top exporter of wood products like paper and wood furniture while tropical timbers are a top export in Malaysia and Indonesia. Fishing is a major source of food, particularly in Japan and China. In Japan larger, high-quality fish are common while in China, smaller fish are being consumed at a higher rate. As the middle-class population in Southeast Asia expands, there is an increase of more expensive meats and foods becoming a part of the traditional diet.[135]
Secondary sector
The manufacturing sector in Asia has traditionally been strongest in the East Asia region—particularly in China, Japan, South Korea, Singapore, and Taiwan.
Many developed-nation firms from Europe, North America, Japan, Taiwan and South Korea have significant operations in developing Asia to take advantage of the abundant supply of cheap labor. One of the major employers in manufacturing in Asia is the textile industry. Much of the world's supply of clothing and footwear now originates in Southeast Asia and South Asia, particularly in Vietnam, China, India, Thailand, Bangladesh, Pakistan, and Indonesia.[136]
Tertiary sector
Asia's top ten important financial centers are located in
Call centers are also becoming major employers in the Philippines due to the availability of many English speakers, and being a former American colony familiar with the American culture.[142] Huge corporations from English speaking countries like USA, Canada, Australia and even UK invest in the Philippines because they pay for the employees and companys' miscellaneous costs are cheaper in the Philippines. According to CNBC International news last 2014, Philippines became the BPO Capital with an estimated 15.5 billion US dollars of revenue creating more than 900,000 jobs for Filipinos.
On the other hand, there are also potential huge holes for BPO business. The increase of numbers of international banks major huge corporations are trying to cut their annual company expense by changing BPO to AI (Artificial Intelligence). If the Philippine government will not think new competitive ideas to maintain the BPO business in the country, the country will lose a billion dollars of revenue by the next 10 years (according to ABS-CBN business news channel).[citation needed]
The rise of the Business Process Outsourcing (BPO) industry has seen the rise of India and China as the other financial centers. Experts believe that the current center of financial activity is moving toward "Chindia" – a name used for jointly referring to China and India – with Shanghai and Mumbai becoming major financial hubs in their own right.
Other growing technological and financial hubs include
See also
- Overview
- Asia
- History of Asia
- Geography of Asia
- Commonwealth of Independent States
- World economy
- 1997 Asian financial crisis
- Economy of East Asia
- Key Indicators for Asia and the Pacific
- List of Asian states by GDP growth
- GDP
- List of Asian and Pacific countries by GDP (nominal)
- List of Asian and Pacific countries by GDP (PPP)
- List of Asian countries by GDP
- List of Asian countries by GDP per capita
- List of Asian and Pacific countries by GDP (PPP)
- List of Southeast Asian Nations by GDP
Notes
References
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