JAKARTA - IHS Markit provides latest report on ASEAN. Following is the highlights of the report:
Report Summary:
- ASEAN GDP is currently estimated to be around US$ 2.5 trillion, which is larger than India’s GDP.
- With strong growth expected to continue in the medium term, ASEAN has emerged as Asia’s third growth engine, in addition to China and India.
- Regional and bilateral trade liberalization, infrastructure development, rapid growth of domestic consumer spending and the growth of manufacturing hubs in Southeast Asia will continue to make the ASEAN region one of the most dynamic parts of the world economy over the medium to long-term outlook.
Key Data Points:
- The latest Nikkei ASEAN Manufacturing Purchasing Managers’ Index produced by IHS Markit showed an improvement to 50.3 in August from 49.5 in July, with new manufacturing orders rising at the second-fastest pace in 23 months.
- The ASEAN region is projected to be one of the fastest growing regions of the global economy over the next twenty years, with the total value of ASEAN GDP forecast to rise from around US$2.5 trillion in 2016 to US$5.8 trillion by 2025.
- ASEAN GDP is projected to surpass Japan’s GDP by 2025. The rapid growth in the total size of ASEAN GDP has meant that ASEAN has emerged as Asia’s third growth engine after China and India.
- By 2030, three ASEAN economies are projected to have a GDP value exceeding USD 1.0 trillion. Indonesia will emerge as a major Asian economic power by 2030, with total GDP of US$ 3.8 trillion.
- Two other ASEAN economies are projected to reach the US$ 1.0 trillion threshold by 2030, with Malaysian GDP projected to reach US$ 1.0 trillion and Philippines GDP projected to be around 1.1 trillion.
Rajiv Biswas, Asia-Pacific chief economist for IHS Markit