The economic outlook for Asia is looking positive, with impressive growth expected in developing economies this year and next. The Asian Development Bank predicts Asian economies will grow by 4.8% and South Asia will be the standout growth region, due to India’s strength. However, there are concerns about a lack of productivity boosting structural reforms, which could stall growth. The World Bank warns of the need for more regional cooperation on moving towards a net zero position on greenhouse gas emissions, as East Asian countries now have emissions above the world average. The International Monetary Fund models the costs of geopolitical fragmentation, predicting that a permanent rise in barriers to investment could reduce global output by about 2%, with emerging market countries the most affected. With all this in mind, it is important for Asia to continue to innovate and collaborate, with locally generated knowledge playing an increasingly important role.
