McKinsey&Company
Winning in Asia
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Asia rising. As COVID-19 eases and global trade resumes, Asia is on track to become the best performing region globally. The region’s nominal GDP is expected to expand from $33 trillion in 2021 to $39 trillion in 2023. In comparison, the nominal GDP in the Americas and Europe over the next two years is projected to reach $34 trillion and $26 trillion, respectively. Unlike that of other regions, Asia’s growth story will be backed by a revival in exports, capital expenditure, and productivity growth, rather than reliance on leverage and government stimulus. [FT] |
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Rebound in India. One of Asia’s fastest-growing economies is also showing signs of bouncing back. After recording a 7.3% contraction in GDP in FY 2021–22, India is forecasted to grow 8–8.5% in the financial year beginning in April. Following reports of stabilization in Omicron cases in certain areas, some states in India have relaxed restrictions, resulting in a pickup in economic activity. [AP] |
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A widening gap. Asian corporations have lately struggled to create economic value. In the decade before the COVID-19 pandemic, more companies in Asia lost economic profit than created it, even though $1 of every $2 in new global investment went to companies in Asia. The pandemic has further widened the gap between leaders and laggards. |
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A broader role. Companies in Asia can capitalize on the region’s economic growth to enhance their performance. Corporations are hugely important to economies, accounting for 72% of GDP in OECD advanced economies, according to MGI research. But in addition to boosting capital investment, employment levels, and labor productivity, businesses must also play a broader role in society. Read the article to learn five capabilities that companies in Asia need to stay competitive and succeed in the next normal. |
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| — Edited by Arshiya Khullar |
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