Asia's economies operate at different stages, but there are three broad factors driving the region's growth, according to Business Times SG. These are the attitude of the people in the countries to globalization and openness, improvement in its institutions, and the dynamics involved in the people living within these countries.
The Asian economy is hard to ignore. It has grown significantly and has also been consistently higher than those of the other regions. In fact, according to reports, the Asian region's growth accounted for half of the global growth tracked last year.
That may be impressive, but what's even more interesting is how the growth of the region has been changing. Exports to the rest of the world are important but Asian economies mix this with domestic and regional sources to grow exponentially. This is because of an increased supply chain in countries, trade, and financial market integration from these economies.
The equity, bond, and foreign exchange markets in the region have grown as well, particularly in regions belonging to what is called "Emerging Asia." The region's equity markets doubled over the last 20 years to close to 40% of the global market capitalization as it exists today.
America appears to be approaching its Asian conundrum the wrong way, as it insists on keeping up its trade dispute with China. What it needed to do, according to The Hill, is to be more friendly with China and, in turn, Asia. There are both strategic and economic benefits to becoming friendly with the country since the region is enjoying growth.
The US and China are locked in a trade dispute, and China has since searched for other countries with which to trade. The US is, instead, presenting policies where it has instead pulled away and alienated potential trade partners to talk to during the duration of the trade dispute.
A trade deal worthy of being highlighted is the deal between Japan and the EU. In this deal, the EU drops its 10% tariff on Japanese imports, while the Japanese side will remove numerous policies acting as "impediments" to the entry of import cars from Europe, under a "historic free trade agreement" decided on by both parties.
The future growth of Asia may soon slow down, according to analysts, as economies start to mature and the populations continue to age. On the back of a strong initial growth, it will still manage to outpace those of developed and emerging economies outside of the region.
