India and Southeast Asia to Drive Global Economic Growth, Says S&P Global Insights
Introduction
S&P Global Insights has highlighted India’s impressive economic growth and positive forecasts for several Southeast Asian countries as key drivers for global growth. Rajiv Biswas, S&P Global’s Asia-Pacific chief economist, made these assertions at the annual energy APPEC conference, emphasizing the long-term significance of the Asia-Pacific region for global economic growth.
Asia-Pacific’s Role in Global Growth
Biswas stated that Asia-Pacific is not only a vital driver of global economic growth in the near future but also over the next decade. He identified India, Indonesia, the Philippines, and Vietnam as particularly promising economies within the region, with substantial expansion expected in India and strong growth projected in Southeast Asian countries.
“India’s very robust actually… the momentum in the economy looks really quite strong at the moment.”
Rajiv Biswas
Global Asia-Pacific Chief Economist at S&P Global
Asia-Pacific Growth Projections
S&P Global Insights forecasts that the Asia-Pacific region’s growth will strengthen from 3.3% in the previous year to 4.2% in the current year. Biswas also highlighted that approximately 55% of the world’s GDP increase over the next decade is expected to come from the Asia-Pacific region.
Implications for the U.S. and China
Biswas acknowledged that the United States will remain a significant contributor to global economic growth, accounting for 15% of the world’s growth over the next decade. He also emphasized China’s pivotal role in this growth story, with China expected to contribute approximately one-third of the total increase in global GDP. However, Biswas noted that China’s recovery has been weaker than anticipated and its growth momentum has suffered.
China has experienced disappointing economic data that has fallen short of expectations.
Overall, S&P Global Insights predicts global growth to reach 2.5% this year and next.
