By Bilal Hafeez 22-10-2019

The McKinsey Podcast: The Future of Asia (McKinsey Institute)

(28 min listen)

(You can listen to the podcast by clicking here)

Dives into the upcoming ‘Asian century’ – over half of the world’s GDP will come from Asia by 2040, emerging as the new centre of global commerce, consumption, capital, and technology. In a global context, Asia should collaborate more with the rest of the world. In turn the world ought to rethink certain premade economic arrangements with Asia.

Currently, the biggest uncertainty in Asia is geopolitical risks. Consequently, the podcast hosts suggest, maintaining the win-win mentality becomes important for Asian policymakers. Continuous social progression is another key driver for the region’s growth aside from an ample supply of labour force. The podcast then breaks Asia down into four parts: China, advanced Asian-Oceanian economies, the ‘emerging’ Asia and the ‘Indian Frontier’ Asia. The interrelation between these four will be crucial for the region’s future development.

Why does this matter? Asia’s combination of a versatile, hungry demographic and an accumulated wealth resulting from its integration with the rest of the world turns it into the next key powerhouse of global growth. While geopolitical uncertainties are the root causes of economic turbulence both within Asia and with the rest of the world, we can still put faith in this region’s continuous flow of vitality and growth potentials. Historically, entities around the region have all learned their fair share of lessons on how to handle cross-country conflicts while minimising damage to themselves.