Asean's share of global GDP 'could rival eurozone'
Region could match eurozone in five years if policymakers enact the right reforms, says HSBC report; FDI inflows and role in broader supply chains are key factors
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ASEAN could add nearly as much to global output as the eurozone over the next five years, a HSBC report has suggested, calling the region's growth in importance "too big to ignore".
"If policymakers enact the right reforms the region can lift its share of global GDP (gross domestic product) to as much as 5 per cent by 2030 in nominal USD terms and more than 8 per cent in PPP (purchasing power parity) terms," said HSBC Global Research.
"In addition to the demographic boom, we believe Asean is set to see a surge in investment after years of neglect," HSBC economists wrote in the report, noting that this has already come through a mix of public infrastructure spending, booming manufacturing foreign direct investment (FDI) commitments, China's Belt and Road Initiative and Japanese infrastructure financing.
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