Economic perspectives are now very good in Asia. The services economy is now greater than 55% of overall GDP. The focus is increasingly on sustainable growth and corporate profitability boding well for better return on investment. China’s role as the locomotive of global growth will pass to India.
Investing in the Asia Pacific region includes a wide range of countries, including more developed countries such as Singapore and Australia, alongside China and Taiwan, for example. Large-cap Australian companies, particularly in the financial sector, are well capitalized and have track records of paying consistent dividends.
Often more developed countries make up a large proportion of any Asian income fund, which may help offset the risk from holdings in some of the smaller, less developed emerging market economies.
India will be the fastest growing major emerging markets economy going forward and the No.2 economy by 2050. The country benefits from demographics, a newly energized central bank that is focused on reducing inflation, and strong foreign investment.
Bangladesh continued to experience growth in FDI inflows, with manufacturing accounting for a major part of inflows and contributing significantly to employment creation. Bangladesh also come up with huge potential and now good place for foreign investment – improving their social and economic situations as well as reform some investment policy and give lots of opportunities to foreign investors. Areas of reform include increasing infrastructure spending, opening up sectors to foreign direct investment.
In South-East Asia labor costs are considerably lower compared to North-Asian countries such as Korea, Taiwan, Japan and China. Thus, FDI (Foreign Direct Investment) flow towards SE-Asia is naturally increasing at healthy pace as new factories are being set up in low-labor cost countries. In addition, a young and growing middle income class is also attracting FDI as companies wish to be closer to the customer.
In addition, the potential establishment of the Bangladesh-China-India-Myanmar Economic Corridor and the China-Pakistan Economic Corridor are likely to accelerate infrastructural development by attracting foreign investment in related countries.
New global projects such as Silk Road Economic Belt and Eurasian Economic Union give to countries of the region new opportunities for economic development and entry into new markets. Economic success in the future will depend on whether regional countries manage to seize the given opportunities.