Jakarta –
New Credit Suisse research suggests there is a centuries-old threat to get rich in Asia. That is, a person will remain poor and not yet prosperous in his old age.
Co-head of Asia Pacific Strategy and India Equity Strategist, Securities Research Credit Suisse Neelkanth Mishra said the threat of the old man before the rich occurred because the per capita income of many Asian countries was very low. Meanwhile, the majority of the population has entered the average productive age.
“Most Asian countries are looking for a certain average age, their per capita income is low,” Neelkanth said in a webinar on Friday (11/4/2022).
According to him, people in Thailand and China fell into the old threat trap before they got rich. This is because the population of these two countries is almost above the productive age. Meanwhile, per capita income is still low.
What is surprising is that Indonesia also has the potential to be trapped by the old threat before getting rich. This happens if Indonesia’s per capita income continues to be low as the average age of its population ages.
“This risk can also occur for Indonesia, the Philippines, India and possibly Vietnam. There is still room for economic growth in the next 10-20 years in these countries,” said Neelkanth.
Credit Suisse also found that Asian countries experienced economic growth two to three times faster than the European Union and the United States over the ten years to 2019.
The economies of ten Asian countries – China, India, Indonesia, Japan, the Philippines, Vietnam, Thailand, South Korea, Malaysia and Taiwan – account for 50% of world GDP. Hence, these 10 countries also provide $ 5 trillion of capital to the world.
It’s just that in some countries there is a drop in fertility rates. However, the decline in fertility rates did not occur in Indonesia.
“Demographics are changing faster, the ten countries’ economies have grown two to three times faster than EU and US growth rates at the same income levels. However, their fertility rates are dropping by five. to seven times faster, “said Neelkanth.
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