Asia is already a leader in many aspects of the digital revolution, but to remain at the cutting edge and reap the full benefits from technological advances, policy responses will be needed in many areas, including information and communication technology, trade, labor markets, and education. License : CC BY-4.0. And finally, to reap the full benefits of the digital revolution, Asia will need a comprehensive and integrated policy response covering information and communications technology, infrastructure, trade, labor markets, and education. With output gaps closing in much of the region, fiscal policies should focus on ensuring sustainability. But despite the strong outlook, policymakers must remain vigilant. The world economy continues to perform well, with strong growth and trade, rising but still muted inflation, and accommodative financial conditions, notwithstanding some increased financial market volatility in early 2018. APAC 2020, The decade ahead is a special mini site featuring key issue snapshots, flashpoints and power player profiles written by some of the world's leading This is due to accelerated investment in digital transformation in the region, the creation of … Growth in the Asia-Pacific economies is expected to decelerate slightly to about 5.3 percent during 2016–17, according to the latest Regional Economic Outlook for … In contrast, during the East Asian Crisis, China recorded GDP growth of 7.9% y/y in 1998, while in the Global Financial Crisis China grew at 9.4% y/y in 2009. Finally, the global economy is becoming increasingly digitalized, and while some recent advances could be truly transformative, they also bring challenges, including those related to the future of work. Near-term prospects have improved since the Regional Economic Outlook Update: Asia and Pacific in October 2017, and risks around the forecast are broadly balanced for now. Similar values. GDP Growth Rate - Forecast 2020-2022. Same region. While GDP growth forecasts for 2017–18 have been repeatedly revised up over the last two years, inflation forecasts have been kept constant or revised down (Figure 2.1). Given still moderate wage and price pressures, monetary policies can remain accommodative in most Asian economies for now, but central banks should stand ready to adjust their stances as inflation picks up, and macroprudential policies should be used appropriately to contain credit growth. Current: IDC Predicts 65% of APAC* GDP will be Digitalized Reaching US$ 1.2 Trillion in Spending by 2022 A sudden increase in inflation may then persist, and disinflating may be costly if sensitivity of inflation to the unemployment gap has declined. On the downside, Asia remains vulnerable to a sudden and sharp tightening of global financial conditions, while too long a period of easy conditions risks a further buildup of leverage and financial vulnerabilities. Strong SME sectors do not necessarily drive economic growth, but they are “characteristic of fast-growing economies” (Gries and Naudé 2008a, 1). With output gaps closing in much of the region, fiscal policies should focus on ensuring sustainability. The IMF Press Center is a password-protected site for working journalists. The third-most populous country in the region and the fourth-most populous in the world is Indonesia, with over 273.5 million people. Latest official GDP figures published by the World Bank. Second, while inflation expectations are generally well anchored to targets, the influence of expectations in driving inflation has declined, as the inflation process has instead become more backward looking. To address these questions, the chapter analyzes inflation dynamics relying on a variety of approaches, including estimation of augmented Phillips curves, principal component analysis to distinguish global factors from country-specific factors, and an analysis of trend inflation to shed light on how long low inflation is likely to persist. And indeed, in line with an upturn in oil prices over recent months, headline inflation in the region has picked up, while core inflation has remained subdued and below target in many economies. How well anchored are inflation expectations? Policymakers should also push ahead with structural reforms to address medium- and long-term challenges, such as population aging and declining productivity growth, and to ensure that Asia is able to reap the full benefits of increasing digitalization in the global economy. Greater China accounted for the lion’s share of this activity, contributing 1,655 stories, more than half the total… The strong economic outlook makes this an opportune moment to pursue such reforms. World Bank national accounts data, and OECD National Accounts data files. While risks around the forecast are broadly balanced for now, they are skewed firmly to the downside over the medium term. As users realize its benefits, public cloud adoption is set to drive significant economic value in key APAC markets through GDP and employment uplift. In 2018, exports to China contributed approximately 26 percent towards the gross domestic product of Taiwan. United States Total Debt accounted for 895.4 % of the country's GDP in 2020, compared with the ratio of 870.7 % in the previous quarter. But despite the strong outlook, policymakers must remain vigilant. The global economy is slowing but APAC continues to record strong growth. Reflected as the world’s principal growth engine, the region accounted for over 62 percent of the global GDP growth in 2018 3. India follows closely behind, with 1.38 billion. Q2/21. The digital economy in Asia-Pacific (APAC) is expected to be worth $1.16tn by 2021, accounting for 60% of the region’s gross domestic product (GDP… If such risks materialize, higher inflation may well persist, given the stickiness of the inflation process. Asia is embracing the digital revolution, albeit with significant heterogeneity across the region. A second challenge is slowing productivity growth. This is due to accelerated investment in digital transformation in the region, the creation of … Core inflation remains below inflation targets in many Asian economies (Figure 2.2). Headline inflation has been picking up with the upturn in oil prices since September, but core inflation remains surprisingly subdued, especially in advanced economies. Given the many uncertainties, macroeconomic policies should be conservative and aimed at building buffers and increasing resilience. With accelerated DX investments creating economic gravity, IDC predicts that the digital economy -will accelerate, with over 65% of APAC GDP expected to be digitalized and spending to hit US$ 1.2 trillion between 2020 and 2023. It will be important to strengthen monetary policy frameworks and improve central bank communications in order both to increase the role of expectations in driving inflation and to maintain expectations anchored to targets. And in India, growth is expected to rebound to 7.4 percent, following temporary disruptions related to the currency exchange initiative and the rollout of the Goods and Services Tax. Good Times, Uncertain Times: A Time to Prepare, IMF Data Mapper® v3 By 2025, Indian GDP is also forecast to surpass Japan, which will make India the second-largest economy in the Asia-Pacific region," it said. Growth in Japan has been above potential for eight consecutive quarters and is expected to remain strong this year at 1.2 percent. WORLD AMERICA EUROPE ASIA AUSTRALIA AFRICA. These vulnerabilities could be exacerbated by excessive risk taking and a migration of financial risks toward nonbanks. All rights reserved. To what extent has inflation become less sensitive to economic slack—that is, has the Phillips curve flattened? These archetypal luxury travellers make up a tiny proportion (0.15%) of the region’s giant population, but a huge proportion of its travellers – Inbound and Outbound. Government expenditure on education, total (% of GDP) - Panama from The World Bank: Data Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). The APAC region saw a slower contraction of -2.12% last year, with China witnessing positive growth amid the pandemic.”. Some economies should also focus on improving revenue mobilization to create space for infrastructure and social spending and help support structural reforms. That said, there is clear recognition of the importance of SMEs in job creation—a key dimension of the development process, Finally, what are the key implications for policymakers? Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website. Last. Rank Country GDP (billions of USD) 1 China 14,140,163 2 Japan 5,413,054 3 India 2,935,570 4 South Korea 1,629,532 5 Australia 1,376,255 6 Indonesia 1,111,713 7 Taiwan 564,993 8 Thailand 5294 9 Hong Kong (China) 372,989 With output gaps closing in much of the region, continued fiscal support is less needed, and most economies in Asia should turn to strengthening buffers, increasing resilience, and ensuring sustainability. Key risks include further market corrections, a shift toward protectionist policies, and an increase in geopolitical tensions. How do these drivers of inflation in Asia differ from those in other regions? While GDP growth forecasts for 2017–18 have been repeatedly revised up over the last two years, inflation forecasts have been kept constant or revised down (Figure 2.1). Motivated by these developments, this chapter aims to shed light on the following questions: Why has inflation been low in Asia recently, and how long will it last? The data reached an all-time high of 895.4 % … While risks around the forecast are broadly balanced for now, they are skewed firmly to the downside over the medium term. Asia is already a leader in many aspects of the digital revolution, but to remain at the cutting edge and reap the full benefits from technological advances, policy responses will be needed in many areas, including information and communication technology, trade, labor markets, and education. Looking forward, these findings suggest that inflation may well rise in Asia as commodity prices and other temporary factors reverse themselves (the current WEO projects a near-term increase in commodity prices). Finally, cybersecurity breaches and cyberattacks are on the rise globally, and climate change and natural disasters could continue to have a significant impact on the region. SEOUL / SINGAPORE – The film and television industry generated a total economic contribution of USD 18.45 billion (51,181 Won) in 2018, an estimated 241% growth compared to a similar report researched in 2015, according to new research by Oxford Economics.The report also found that the industry supported a total of 315,400 jobs, and a total tax contribution of USD 5.69 billion (6,260 … Driven partly by the procyclical tax stimulus in the United States, near-term economic prospects for both the world and Asia have improved from the alreadyfavorable outlook presented in the October 2017 Regional Economic Outlook Update: Asia and Pacific. Line Bar Map. The global digital sector growth was forecast to impact total Gross Domestic Product (GDP) in the Asia Pacific region by 2.1 percent in 2021. The APAC region is home to some of the most populous countries. As SMBs become more digitally mature, they could add as much as US$3.1 Trillion to Asia Pacific’s GDP by 2024, accelerating economic recovery. Inflation in the Asia-Pacific region may increase once global factors, including US inflation and commodity prices, become less favorable, and policymakers should stand ready to act. Central banks should be vigilant in responding to early signs of inflationary pressure, including from global factors. More flexible exchange rates could mitigate the role of imported inflation, and macroprudential policies can help address financial stability risks. The largest threat to the GDP of Asian cities comes from tropical windstorms (known in the region as typhoons), with a total expected loss of $59.14bn each year. World's GDP is $80,934,771,028,340 (nominal, 2017).. See also: GDP per Capita In addition, higher inflation may persist on account of the increasingly backward-looking inflation process. Data was sourced from the world bank. APAC, though it represents the largest region in terms of global population (around 4.3bn people, 60% of the total global population) has just 6.4m of the global HNW individuals. Country. Tailored measures are needed to boost productivity and investment, narrow gender gaps in labor force participation, deal with the demographic transition, address climate change, and support those affected by shifts in technology and trade. Find Out GDP (in mllions USD) GDP per capita American Samoa: 537: 7,874 Bangladesh: … China is the most populous in the Asia-Pacific region and the world, with about 1.44 billion people. Chapter 2 analyzes the factors behind low inflation despite strong growth, and how long this is expected to last. Rank Region&Country 2017 GDP (PPP) billions of USD; 1 China $25,350 2 Japan $5,405 3 South Korea $2,029 4 Taiwan $1,177 5 Hong Kong $449.5 6 Macao $65.7 7 Mongolia $37.7 Total : $34,514.1 GDP data can be hard to come by for some Asian countries, but below is a table that can serve as a point of reference for comparing countries economic output. In principle, the monetary policy response to commodity price shocks should be to accommodate first- round effects but not the second-round effects. India. Despite the global economy slowing, owing largely to ongoing trade disputes, APAC has continued to record robust economic growth rates. Population figures based on United Nations data. Europe witnessed a steep contraction in real GDP growth by 7.16% in 2020 followed by the MEA region (-5.23%), and the Americas (-5.16%). Q3/21. The world economy continues to perform well, with strong growth and trade, rising but still muted inflation, and accommodative financial conditions, notwithstanding some increased financial market volatility in early 2018. I&C was followed closely by TMT, which recorded 573 ‘for sale’ stories (18% of the total). Asia is expected to grow by around 5½ percent this year, accounting for nearly two-thirds of global growth, and the region remains the world’s most dynamic by a considerable margin. Growth in Asia is forecast at 5.6 percent in 2018 and 2019, while inflation is projected to be subdued. Core inflation remains below inflation targets in many Asian economies (Figure 2.2). In 2019, China led the Asia Pacific region in terms of GDP with 14.34 trillion U.S. dollars, followed by Japan, India and South Korea. The gains from globalization have not been shared equally, and, as highlighted by recent tariff actions and announcements, a shift toward inward-looking policies is another risk, with the potential to disrupt international trade and financial markets. The per capita GDP in Jiangsu reached 125,000 yuan ($19,230) last year, ranking first among all provincial-level regions in China. Plot, compare and import data. None. Copyright 2021 | MH Newsdesk lite by MH Themes, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Indonesian digital health clinic Newman’s helps men solve hair loss and other stigmatized health issues, An overview of the Malaysian startup scene, Jobseeker Solutions A Unique Opportunity In Singapore For 2018. Improved monetary policy frameworks and central bank communications could increase the role of expectations in driving inflation and thus make inflation less sticky. Highest values. The main policy implications of the findings are: © 2021 International Monetary Fund. Finally, the global economy is becoming increasingly digitalized, and some of the emerging technologies have the potential to be truly transformative, even as they pose new challenges. Jiangsu comes in second place after south China's Guangdong, with a GDP surpassing 10 trillion yuan. Geopolitical tensions remain another important source of risk. On the upside, the global recovery could again prove stronger than expected, and over time the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and successful implementation of the Belt and Road Initiative—assuming debt sustainability and project quality are maintained—could both support trade, investment, and growth. Asia has been in a sweet spot of strong growth and benign inflation. According to a recent study by IDC, nearly two-thirds (65%) of GDP in the APAC region will be digitized and expected to explode to US $ 1.2 trillion between 2020 and 2023. Finally, the global economy is becoming increasingly digitalized, and some of the emerging technologies have the potential to be truly transformative, even as they pose new challenges. Third is interstate conflict, with an expected Cisco’s 2020 Asia Pacific SMB Digital Maturity Study shows that nearly 70 percent of SMBs in Asia Pacific are accelerating the digitalization of their businesses as a result of COVID-19. Global growth in 2017 was the highest since 2011 and is expected to strengthen further in 2018–19, supported by broad-based momentum across countries and fiscal expansion in the United States. And given the relative flatness of the Phillips curve, the output costs of disinflating may be high. The findings highlight that temporary global factors, including imported inflation, have been key drivers of low inflation. Given still moderate wage and price pressures, monetary policies can remain accommodative in most Asian economies for now, but central banks should stand ready to adjust their stances as inflation picks up, and macroprudential policies should be used appropriately to contain credit growth. In terms of city clusters, … Aggregates. India’s economy is the fifth-largest in the world with a GDP of $2.94 trillion, overtaking the UK … What has been the role of import prices and global factors? Driven partly by the procyclical tax stimulus in the United States, near-term economic prospects for both the world and Asia have improved from the already-favorable outlook presented in the October 2017 Regional Economic Outlook Update: Asia and Pacific. Key risks include further market corrections, a shift toward protectionist policies, and an increase in geopolitical tensions. Access to this database is free-of-charge and the data can be exported to Microsoft Excel. Higher inflation in the rest of the world and weaker currencies in the region could pose upside risks to inflation. "India is forecast to become the world's fifth largest economy in 2019, reaching a total GDP size exceeding USD 3 trillion, and overtaking its former colonial ruler, the United Kingdom. Many Asian economies face important medium-term challenges, including population aging and declining productivity growth, and will need structural reforms, complemented in some cases by fiscal support. Over the medium term, however, downside risks dominate, including from a tightening of global financial conditions, a shift toward protectionist policies, and an increase in geopolitical tensions. The second largest threat to Asian cities’ GDP is market crash at $33.98bn. 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