Growth potential in South Asia and Southeast Asia, a region SASEA.
Patrick Watson explains Globalization may not be over, but it’s certainly changing. Economist Noah Smith foresees growth shifting to South Asia and Southeast Asia, a region he calls SASEA. Growth potential there could be even greater than China’s was 20 years ago. Key Points: The contiguous area stretching from Pakistan southeast to Indonesia contains one-third of world population, but is still in the early stages of industrialization. Moreover, SASEA’s population is relatively young and will remain so, giving the area a demographic advantage. Countries like the Philippines, Bangladesh and Vietnam are becoming significant manufactured goods exporters. Investment is growing from Western companies seeking to reduce their China risks. New tariffs on China should accelerate this trend. Ironically, Chinese companies are moving production into SASEA countries for the same reasons. Bottom Line: Smith says the forces many thought would reverse globalization may actually be accelerating it. Geopolitics and protectionism are moving industrialization to new places, with SASEA positioned to benefit next.
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