Authors: Oliver Tonby, Senior partner in McKinsey’s Singapore office
Wonsik Choi, Senior partner in the Seoul office
Jonathan Woetzel, Director of the McKinsey Global Institute
Jeongmin Seong, Senior fellow at McKinsey Global Institute
Patti Wang, Consultant at McKinsey Global Institute
Affiliation: McKinsey Global Institute
Publisher: McKinsey Global Institute
Date/Place: July 2019, Singapore
Type: Report
Number of Pages: 20 pages
Link: https://www.mckinsey.com/featured-insights/asia-pacific/asias-future-is-now
Brief:
The study observes that global economies have shifted their attention towards Asia, with its share of the global GDP to become 50% by 2040. The region has shown tremendous economic progress along with Human development. Its growth story has changed the question from how Asia will rise, to how Asia will lead. The study also indicates that Asia is becoming the center for structural shifts in trade patterns. Apart from becoming self-reliant, the region has made the most of labor-intensive industries and will have to move towards infrastructure, workforce skills, and productivity, which will gain more importance in the future as the R&D (Research & Development) innovations are at a constant rise. Trade in knowledge-intensive services is another gap to fill. Rapid evolution of corporate eco-system has been seen as Asia’s share of top performing firms globally, which has increased from 19% to 30%. Moreover, China’s AI (Artificial Intelligence) initiatives and significant steps towards digitalization by India and Indonesia have attracted innovation hubs and huge amount of venture capitals to the region. The study also highlights the dramatic drop in poverty in the region, which makes it the greatest economic success story in the world.
