Asia

Any country’s economic growth is not just about GDP but more so about the factors that build that GDP and per capita GDP. One of the most important factors that influence GDP growth is demographic distribution. As per various estimates by 2047, India will have a 1.1 billion population in the age group of 15-64 years which is going to be 1.6 times the entire population of Europe. It is expected that less than 15% of the population will be engaged in agricultural employment from the current 43% levels. Thus, more jobs will be required in the space of manufacturing and services. To achieve a minimum of USD 32 trillion economy by 2047, the per capita income will increase to about USD 18,800 by 2047 from USD 2,450 estimated in 2022. When we look at the past three decades, India’s growth ...

The United States Space Force has discussed setting up a hotline with China to prevent crises in space, US commander General Chance Saltzman revealed on Monday. The chief of space operations said a direct line of communication between the Space Force and its Chinese counterpart would be valuable in de-escalating tensions but that the US had not yet suggested the idea to China. “What we have talked about on the US side at least is opening up a line of communication to make sure that if there is a crisis, we know who we can contact,” Saltzman said, adding that it would be up to President Joe Biden and the State Department to take the lead on such discussions. The comments come as the US Space Force looks into establishing a branch in Japan, as China’s military ambitions in the Indo...

India is the fastest-growing major economy this year. While others in the region look to be struggling, there are few clouds on the horizon for India. Inflation is high, but falling, and the rupee is one of the strongest currencies in the region, which will be further helped as Indian government bonds are set to be included in global indices next year Economic growth - firming, not stalling In the second quarter, India recorded a growth rate of 7.8% YoY, which was a marked increase over the 6.1% rate of growth recorded for the first quarter. This makes India the fastest-growing major economy in the world and leaves growth on track to achieve 7% for the full year. India’s growth momentum is in stark contrast to the rest of the Asia Pacific region, where economic growth is gene...

The phrase “factory Asia” describes one of history’s most impressive economic achievements. Over the past half-century Japan, South Korea, Taiwan and, more recently, China became bustling hubs for manufacturing goods, which they then exported to the rest of the world, especially the well-off West. Millions of Asians escaped poverty by making stuff; many grew prosperous. Now the region’s economic model is shifting again, with consequences for Asia and for the world. Asia’s long manufacturing boom fostered a wave of trade integration. In 1990, 46% of Asian trade took place within the region. By 2021 that figure had risen to 58%, making it the most integrated continent after Europe. As Asia has become richer and its firms more muscular, investment flows are becoming more regional, too. ...

The Chinese yuan has fallen by about 6% against the US dollar so far this year, a level not seen since the 2008 global financial crisis China’s central bank has been forced to tighten its control of bulk dollar purchases by domestic firms, as the Chinese currency faces mounting pressure after falling to levels last seen 15 years ago. Companies that need to purchase $50 million or more will now need approval from the People’s Bank of China (PBOC), which convened a meeting with some commercial banks over the weekend on the matter, sources said on Monday. “The approval process will be extended,” said one of the sources. “The recent yuan depreciation has indeed been too severe and many now expect the yuan to weaken beyond 7.5 per dollar.” The central bank has warned some lenders o...

An erosion of trust between the government and its people now threatens the country’s decades-long boom. China’s economy, the world’s second largest, is facing its most serious setback in a generation. During the past two years, economic growth appears to have been cut nearly in half. After emerging from the “zero covid” policies that Xi Jinping, China’s leader, ordered early in the pandemic, the country now faces a real-estate crisis and faltering confidence from both its own citizens and overseas businesses. The problems have sparked debate among economists about whether Xi’s increasingly autocratic regime is to blame, and what a major slowdown could mean for the rest of the world. To talk about China’s economy and the possible causes of its malaise, I recently spoke by phone with...