In the next ten years (or even earlier), the Asia Pacific region is expected to come on top as the most important component of the global economy, not only boosting the markets of its member countries but also providing positive gains for foreign direct investments.
According to the 2017 Regional Economic Outlook report, Asia and the Pacific were expected to lead the global growth, with a 5.4% increase in 2018—and the forecast did not disappoint international investors looking for opportunities in this emerging investment hub.
There are several factors that made the Asia-Pacific market highly favored by international investors. For instance, the demographic advantage of the region—with about half of the world’s population—makes it a pool of billions of consumers, facilitating to a highly dynamic market. Led by China, the region’s impressive population delivers a combined GDP that makes the regional market the most productive in the world.
It is also a fact that every country in the region is home to the world’s biggest economies like Japan, China, Australia, and India, as well as emerging markets like Indonesia, Thailand, the Philippines, and Vietnam, among others. Moreover, the growing population of young middle class among Asia-Pacific nations especially in Southeast Asia has continued to help their economies grow. The increase in consumption and public spending are the direct results of this growth, providing an optimistic forecast for regional market’s current and future investors.
Last but the most important factor is, Asia-Pacific’s sudden yet effective shift in its member country’s trading behavior. Unlike before when they relied on their economic trading partners from Western powers like North America and Europe, intra-regional trading became the norm and the pattern is expected to further boost the region’s rapidly advancing economy.
Many of the world’s offshore financial centers are also taking notice of Asia Pacific’s massive potential as a fertile ground in which to grow dynamic investment portfolios for international investors. The likes of LOM Financial have built up offshore mutual funds specifically designed to take advantage of the growth of emerging markets, which include many of the region’s economies.