For decades, pictures of factory workers toiling on assembly lines were the snapshots many Western investors kept in their minds about Asian economies. It’s time to develop a new image because the chapter of Asia as just a satellite of the West, producing goods at low cost for overseas consumers, has closed.
Today, Asia sees entrepreneurs building world-leading businesses, trade pacts facilitating both talent and cross-border commerce, and new Chinese capital, with its tech bent and Belt and Road linkages, helping to lift regional economies. Asia’s governments are also becoming innovators, deploying digital technology for healthcare, connectivity, and currencies. It all culminates in the potential to pull the world’s economic gravity Eastward.
This report examines the circumstances, opportunities, and risks that business leaders and investors looking at the region should take into account as Asia wields greater economic gravity in an increasingly multipolar world.
1 IMF, as of 30 September 2021
2 Asia includes Developing and Developed Asia; Europe includes the UK and the EU
5 ASEAN - Association of Southeast Asian Nations. https://www.mckinsey.com/featured-insights/asia-pacific/asias-future-is-now
Michael Kelly, Global Head of Multi-Asset, and Mary Nicola, Portfolio Manager, Global Multi-Asset, share insights on the evolution of the global bookends of US and China as they have risen to become the twin engines of global growth.
Elizabeth Soon, Head of Asia ex-Japan Equities, shares exciting secular trends and quantum changes bubbling up, leading to the rise of new winners and losers across Asia's expanding equity universe.
Steven Oh, Global Head of Credit and Fixed Income, and Arthur Lau, Head of Asia ex-Japan Fixed Income, explore how Asia’s fourth wave of growth sees the market maturing and deepening, presenting constructive new fixed income opportunities.