APAC Cities Outlook | Sectoral shifts, rising incomes and demographics create long-term changes
Over the past twenty years parts of Asia Pacific have experienced some of the fastest economic growth globally. This trend is set to continue over the next fifteen years, with China and India continuing to lead Asia’s contribution to world GDP. In our latest APAC Cities and Regions Outlook, we explore some of the themes underpinning the outlook.
What you will learn:
- Sectoral shifts: As China transitions towards higher value, less labour-intensive manufacturing, there are opportunities for other lower wage Asian regions to take its place. We believe India and Indonesia are set to become Asia’s new industrial powerhouses.
- Rising income: Long-term economic growth will support rising incomes, helping millions of households move out of poverty and up through the income bands. Across the Asia Pacific region, there will be over 210 million additional middle-income households by 2035 compared to 2020.
- Ageing population: Ageing populations will pose challenges such as rising pension and healthcare costs, there will also be significant opportunities associated with the rise of the “silver economy”
If you would like to get access to our forecasts for 47 cities and sub regions in Asia Pacific, click here to submit a free trial request.
Terms of trade will lift income but challenge Australian households
Australia's terms of trade (the ratio of export prices to import prices) increased sharply through the pandemic due to a combination of strong demand and disrupted supply in markets for Australia's major commodity exports. We had anticipated a correction in the terms of trade over 2022, but the Russian invasion of Ukraine and associated volatility in commodities markets has seen the terms of trade spike again.Find Out More
Eurozone: ECB minutes indicate that July rate hike is a near-certainty
The minutes from the April ECB meeting confirm the hawkish tilt initiated a few months ago continues to gain momentum. With a majority of the council increasingly concerned about the inflation outlook, this makes an interest rate hike already in July almost certain. This should not come as a surprise, however, as recent developments render hawks' case arguably easier to make.Find Out More