APAC’s leading cities show big variations in relative strengths
Tokyo is easily the largest Asia Pacific city by GDP, but the big four Chinese cities are catching up. We forecast that Tokyo’s economy will be overtaken by Shanghai in 2033, and by Beijing in 2036. But that does not imply that either Tokyo or China’s leading cities are top dogs in Asia Pacific. Incomes per head in Singapore are two and a half times the average for the Chinese big four. In Sydney they are higher again, and in Hong Kong they are nearly four times higher than in neighbouring Shenzhen. There is more than one way to measure a city’s economic importance.
What you will learn:
- Over the next five years, Shenzhen and Guangzhou will have the advantage of rising populations of people aged 15-64, contradicting the popular view that everywhere in mainland China is suffering from a demographic squeeze.
- We also project a growing working age population in Sydney. However, in terms of educational attainment, Seoul looks to be in a stronger position than Sydney, as does Tokyo.
- But Sydney scores highly in terms of foreign-born population, which is often seen as a positive indicator of economic competitiveness.
Indian cities’ growth will outpace rest of APAC in 2024
Economic growth will generally remain subdued across major APAC cities in 2024. Nevertheless, we think that some cities will stand out for their better performance. These cities are either located in an economically dynamic country, as is the case for Bengaluru and Hyderabad, or will benefit from somewhat better prospects for their manufacturing sectors, for instance Singapore.Find Out More
Office jobs underpin our five-year employment growth outlook for APAC
Office-based sectors have been the key driver of economic growth across APAC’s key cities over the last 10 years. We forecast that will continue, generating many additional jobs.Find Out More
APAC: Policymakers’ inflation worries should soon start to subside
Inflation in Asia over the past year has by and large been a story of external supply shocks, rather than excess demand. And with those external forces now easing, so too are we seeing inflationary pressures start to recede. We think inflation will drop much further over the first half of this year, giving policymakers the space to stop raising rates.Find Out More