Asia has 54% of the world’s population, and only ten Asian countries have 50%. However, Asia only represents 31% of the world’s GDP, underscoring the region’s enormous economic potential. For investors and businesses, unlocking Asia’s potential is an unavoidable strategic frontier.
Far from a slumbering giant, Asia — and especially several countries in the region other than China — is a rising giant. This region has more than half of the world’s people, but less than a third of the world’s economy:
- The Asia region accounts for 54% of the world’s population, yet only 31% of the world’s GDP, resulting in a share of world GDP-to-population ratio of 0.6.
- The populations of India and China combined represent more than a third of humanity; in terms of GDP, the two countries only account for 20.5%.
- Ten Asian countries account for half the world’s population, yet these ten countries collectively represent 29% of the world’s GDP.
- China is the only country in the region whose share of world population and world GDP is closely aligned: 17.2% vs. 17%, respectively. The equivalent shares for India are 17.8% and 3.5%.
With its relatively large and rapidly growing population, Africa’s share of world GDP-to-population ratio is only 0.1, and Latin America’s is 0.7. In contrast, Europe’s is 2.7, and North America’s is 6.4.
These significant regional variations between the relative sizes of population and GDP illustrate that the future belongs to Asia, as well as to Africa and Latin America. However, Asia, in particular, has the largest populations and the most auspicious prospects for economic growth if GDP per capita levels in the region continue to rise.
The world is gradually but perceptibly changing, and Asia is at the centre of this transformation. If Asia’s share of world GDP were to align with its population share, the world would witness a massive redistribution of global economic power. This would radically transform trade routes, capital flows and political influence.
For investors and businesses, unlocking Asia’s potential is an unavoidable strategic frontier, making it imperative to shift capital investments to Asia and build deeper trade relationships in the region.
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