Asia is set to dominate the world in terms of growth as, according to Standard Chartered, most of its economies are expected to sustain a growth rate of nearly 7 percent throughout the 2020s, Bloomberg reported.
The countries that will lead this trend are India, Bangladesh, Vietnam, Myanmar and the Philippines. A 7 percent growth means doubling of GDP every 10 years. This will help prop up per-capita income. For instance, Vietnam's per capita income is set to rise from $2,500 in 2018 to $10,400 in 2030, as per the report.
South Asian countries will make for nearly a fifth of the world's population by 2030, Standard Chartered predicted in its research.
Back in 2010, a similar list was released tracking countries that would grow at 7 percent and it was equally divided between Asia and Africa. It had India, China, Indonesia, Bangladesh, Vietnam, Nigeria, Ethiopia, Tanzania, Uganda and Mozambique.
China does not feature on this year's list, which is noteworthy, as it had been leading the list for almost four decades before this. This would mean slower economic growth, as well as higher per-capita incomes, which makes it difficult for countries to sustain faster growth rates. The report estimated a 5.5 percent growth for the second-largest economy in the world in the 2020s.
Economic growth does not mean a solution to all problems of the country, but it does bring many positive effects in different sectors, according to Madhur Jha, Standard Chartered's India-bases research head, and Global Chief Economist David Mann.
"Faster growth not only helps to lift people more quickly out of absolute poverty but is also usually accompanied by better health and education, as well as a wider range of—and better access to—goods and services. Higher incomes resulting from faster growth also usually reduce socio-political instability and make it easier to introduce structural reforms, creating a virtuous cycle," Jha and Mann said in the report.
The countries in the 7 percent group tend to have savings and investment rates of at least 20-25 percent, they added.
Non-Asian countries in the 7 percent club are the Republic of Cote d'Ivoire and Ethiopia.
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