India and 9 other major economies of Asia are expected to surpass the GDP of the US by 2030, according to a recent report. The total GDP of the 10 economies, viz, China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Thailand, is expected to be more than $28 trillion, while that of the US will be $22.33 trillion.
Asia’s economic future is bright, however, certain factors like climate change, rising inequality, technological disruption and worsening environment for trade can hinder growth, says a report by global financial services major, DBS. The report adds that several dynamics that have supported the economic development of the Asian economies in recent decades are weakening, and there are many changes in the international environment. Asian countries have benefitted from multiple demographic dividends in the past, but these dividends are not as valuable anymore.
Asian countries like India and Philippines have a young population, which poses a challenge of generating jobs. On the other hand, aging countries like Japan, China and Singapore can offset the demographic drag with the help of technology, says DBS in the report.