World Economic Forum disclosed an analysis that, by 2020, Asia will have the biggest GDP in the world. By 2030, the contribution is predictably worth 60% of the global growth.
The escalation of Asia’s GDP by 2020 is not baseless. Accordingly, big countries such as China, India, and some Southeast Asia countries are the ones making it happen.
In addition, Asia-Pacific is responsible for the 90% exponential growth of new members of the middle class economy in the world. The massive percentage, which accounts for roughly 2.4b lives, prompts various challenges for the businesses and governments of the region.
Among them arises an expectation that the consumption rates will increase, resulting in a steadily elevating economy. However, as good as it may sound, this will not happen as smooth as what is in mind for consumption behavior will predictably be ever-changing.
Considering the challenges, the temporary summary concludes that the challenge will greatly revolve around socio-political matters, which will also impact the economic consumption. Moreover, the shocking shift to Industry 4.0 steps up the challenge to another level.
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Asia 2020 GDP and What Challenges It Presents for the Future
Reflecting upon the above-mentioned factors, many analysts foresee the taxing tasks many parties have to overtake in order to grow in Asia. Additionally, the challenges apply to anyone, regardless of being the government, business, or even an individual.
For the governments, it will be highly challenging to sustain the balance of their respective countries. In short, what the government has to prepare is pertaining to making a conducive environment for investment to raise, accommodating regulations to balance economic advancement and wealth gap, as well as handling other social and political matters. This also includes dealing with the competition for jobs between humans and AI.
For businesses, they need to revolutionize their business mindsets into a lifelong changing model for consumers’ profiles and preferences will swiftly shift all the time. Also, businesses need to be fast in adopting new technologies for their convenience in the future. Also, they need to realize how important data are and start relying on them for everything.
For individuals, the assignment lies in preparing their very own mindsets to be able to adapt to changes. In so doing, one that holds the most prominence is their perception over the job markets. They, in addition, have to be open to various possibilities that are expected to emerge faster than ever before.
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