Is Asian economy rising? – Analysis based on production and consumption
An analysis on the export rate, stock market performance and investment flows shows that the economic meltdown though has affected Asian countries, but not as severe as the Western ones. Economists predict the future will be on hands of Asian countries. Will Asia be able to sustain its economic growth and increase its share in the global GDP? Predictions based on the production, consumption and labor growth says so.
Production and consumption levels in Asian countries
The fundamental drivers of Asian economic growth include business oriented industrial practices, modern technologies, better ways of organizing the market activities and investments compared to Western competitors. Asian economies have been enjoying remarkable productive catch-up in various sectors ranging from automobiles to fast moving consumer goods. Government policies formulated aiming at achieving economic growth has also played a vital role in increasing its contribution to global GDP. The large volumes of educated skill pools in the Asian countries are another factor which differentiates it from the Western countries. Even during the economic slowdown, the labor productivity growth in China have raised to around 10%. The governments and business ventures in these countries have stepped in to invest in production expansion. Balancing the production to meet the consumption requirements is a tough job in these economies, especially in the era of globalization where global companies are eying on the Asian markets realizing its huge potential.
Is tomorrow in Asia’s hands?
Asia has become the favorite choice for investment. Global companies are looking for efficient local partners and building a strong relationship with the governments to establish a good market hold in the Asian countries. As the urban areas are getting saturated, major companies are shifting its focus to the smaller cities and even rural markets which have a prominent role in deciding the growth of the economy. Asia has become the center of Research and Development activities for major technological firms and medical companies due to the availability of large highly educated and skilled people. Many companies have already shifted its innovation and design operations to the Asian countries. As many Asian power houses have significant experiences in providing high quality value products at low cost, capable of conquering the global market, the Western companies have started feeling the threat to their market share.
