Economy of Asia

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Economy of Asia
Statistics
Population 4.2 billion (60% of the world)
GDP Nominal: US$18.515 trillion (2010)
PPP: US$24.077 trillion (2010)
GDP growth Per capita: 7.9% (2010)[1]
GDP per capita Nominal: US$4,629 (2009)
PPP: US$7,041 (2009)
Millionaires (US$) 3.37 million (2011)[2]
Unemployment 3.8% (2010 est.)

Most numbers are from the International Monetary Fund.

All values, unless otherwise stated, are in US dollars
World economy

The economy of Asia comprises more than 4.2 billion people (60% of the world population) living in 46 different states. Six further states lie partly in Asia, but are considered to belong to another region economically and politically. Asia is the world's fastest growing economic region and the largest continental economy by GDP PPP. China is the largest economy in Asia and the second largest economy in the world. Moreover, Asia is the site of some of the world's longest economic booms, starting from the Japanese economic miracle (1950-1990), Miracle of the Han River (1961-1996) in South Korea and the economic boom (1978-2013) in China.

As in all world regions, the wealth of Asia differs widely between, and within, states. This is due to its vast size, meaning a huge range of differing cultures, environments, historical ties and government systems. The largest economies in Asia in terms of both nominal and PPP gross domestic product (GDP) are China, Japan, Russia, India, South Korea, Indonesia, Philippines, Thailand, Malaysia, Singapore, Australia and Turkey.

Wealth (if measured by GDP per capita) is mostly concentrated in East Asian territories and are listed as followed Hong Kong, Macau, Japan, South Korea, Singapore, Brunei, and Taiwan, as well in oil rich countries in West Asia as listed as followed Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Iran, Kuwait, and Oman with the notable exceptions being in Israel and Turkey which both lies in the territory of Asia despite not often being counted as such is are also extremely wealthy nations and powerful economies. Asia, with the exception of Japan, South Korea, Taiwan, Hong Kong and Singapore, is currently undergoing rapid growth and industrialization spearheaded by China and India - the two fastest growing major economies in the world. While East Asian and Southeast Asian countries generally rely on manufacturing and trade for growth, countries in the Middle East depend more on the production of commodities, principally oil, for economic growth. Over the years, with rapid economic growth and large trade surplus with the rest of the world, Asia has accumulated over US$4 trillion of foreign exchange reserves - more than half of the world's total.

Tokyo, Japan
Hong Kong, China
Seoul, South Korea
Manila, Philippines
Mumbai, India
Shanghai, China
Beijing, China
Bangkok, Thailand
Kuala Lumpur, Malaysia
Downtown, Singapore
Jakarta, Indonesia

Economic development

Ancient and medieval times

China and India alternated in being the largest economies in the world from 1 to 1800 A.D. China was a major economic power and attracted many to the east,[3][4][5][6] and for many the legendary wealth and prosperity of the ancient culture of India personified Asia,[7] attracting European commerce, exploration and colonialism. The accidental discovery of America by Columbus in search for India demonstrates this deep fascination. The Silk Road became the main East-West trading route in the Asian hitherland while the Straits of Malacca stood as a major sea route.

Pre-1945

Prior to World War II, most of Asia was under colonial rule. Only relatively few states managed to remain independent in the face of constant pressure exerted by European power. Such examples are China, Siam and Japan.

Japan in particular managed to develop its economy due to a reformation in the 19th century. The reformation was comprehensive and is today known as the Meiji Restoration. The Japanese economy continued to grow well into the 20th century and its economic growth created various shortages of resources essential to economic growth. As a result the Japanese expansion began with a great part of Korea and China annexed, thus allowing the Japanese to secure strategic resources.

At the same time, Southeast Asia was prospering due to trade and the introduction of various new technologies of that time. The volume of trade continued to increase with the opening of the Suez Canal in the 1860s. Manila had its Manila galleon wherein products from the Philippines were traded to Europe. The Philippines was the first Asian country to trade with Latin America via Acapulco. Tobacco, coconut, corn, and sugar trade was the most in demand during that time. Singapore, founded in 1819, rose to prominence as trade between the east and the west increased at an incredible rate. The British colony of Malaya, now part of Malaysia, was the world's largest producer of tin and rubber. The Dutch East Indies, now Indonesia, on the other hand, was known for its spices production. Both the British and the Dutch created their own trading companies to manage their trade flow in Asia. The British created the British East India Company while the Dutch formed Dutch East India Company. Both companies maintained trade monopolies of their respective colonies.

In 1908, crude oil was first discovered in Persia, modern day Iran. Afterwards, many oil fields were discovered and it was learnt later that the Middle East possesses the world's largest oil stocks. This made the rulers of the Arab nations very rich though the socioeconomic development in that region lagged behind.

In the early 1930s, the world underwent a global economic depression, today known as the Great Depression. Asia was not spared, and suffered the same pain as Europe and the United States. The volume of trade decreased dramatically all around Asia and indeed the world. With falling demand, prices of various goods starting to fall and further impoverished locals and foreigners alike. In 1941, Japan invaded Malaya and thus began World War II in Asia.

1945-1990

Following World War II, the People's Republic of China and India, which account for half of the population of Asia, adopted socialist policies to promote their domestic economy. These policies limited the economic growth of the region. They are being abandoned in India and reformed in China. In contrast, the economies of Japan and the Four Asian Tigers (South Korea, Taiwan, Singapore and Hong Kong) were economically successes, and the only successful economies outside of the Western World.

One of the most pronounced Asian economic phenomenons during this time, the Japanese post-war economic miracle, greatly impacted the rest of the world. After World War II, under central guidance from the Japanese government, the entire economy was undergoing a remarkable restructuring. Close cooperation between the government, corporations and banks facilitated easy access to much-needed capital, and large conglomerates known as keiretsu spurred horizontal and vertical integration across all industries, keeping out foreign competition. These policies, in addition to an abandonment of military spending, worked phenomenally well. Japanese corporations as a result exported and still export massive amounts of high quality products from "the Land of the Rising Sun".

Another amazing economic success story is that of South Korea's, also referred to as the Miracle on the Han River. The country was left impoverished after the Korean War, but it was able to recover with double digit annual growth rates. Many conglomerates, also known as chaebols, such as Samsung, LG Corp, Hyundai, Kia, SK Group, and more grew tremendously during this period. South Korea has now become the most wired country in the world.

Taiwan and Hong Kong experienced rapid growth up till the 1990s. Taiwan became, and still remains one of the main centers of consumer electronics R&D as well as manufacturing. However, unlike in Japan and South Korea, the bulk of Taiwan's economy is dependent on small to medium sized businesses. Hong Kong, on the other hand, experienced rapid growth in the financial sector due to liberal market policies, with many financial institutions setting up their Asian headquarters in Hong Kong. Till today, Hong Kong has been ranked as the world's freest economy for many years running, and it remains among one of the world's top 5 leading financial centers.

In Southeast Asia, economic development was fueled by the growth of the bamboo network. The bamboo network refers to a network of overseas Chinese businesses operating in the markets of Southeast Asia that share common family and cultural ties. The network expanded as Chinese refugees emigrated to Southeast Asia following the Chinese Communist Revolution in 1949.[8]

This period was also marked by military conflict. Wars driven by the Cold War, notably in Vietnam and Afghanistan, wrecked the economies of these respective nations. When the Soviet Union collapsed in 1990-91, many Central Asian states were cut free and were forced to adapt to pressure for democratic and economic change. Also, several of the USSR's allies lost valuable aid and funding.

1991-2007

The Chinese economy boomed under the economic measures undertaken by Deng Xiaoping, in the 1980s, and continuing under Jiang Zemin in the 1990s. After the liberalization of the economy of India, growth in India and China increasingly shifted the center of gravity of the global economy towards Asia. In 2007, China's economic growth rate exceeded 11% while India's growth rate increased to around 9%. One of the factors was the sheer size of the population in this region.[citation needed]. Surprisingly, this size of population was considered as biggest reason for lack of growth of economy by both governments earlier and both countries have taken strong population control measures to improve their economy.

Meanwhile, South Korea, Taiwan, Hong Kong and Singapore emerged as the Four Asian Tigers with their GDPs growing well above 7% per year in the 1980s and the 1990s. Their economies were mainly driven by growing exports. The Philippines only began to open up its stagnated economy in the early 1990s. Vietnam's economy began to grow in 1995, shortly after the United States and Vietnam restored economic and political ties.

Throughout the 1990s, the manufacturing ability and cheap labor markets in Asian developing nations allowed companies to establish themselves in many of the industries previously dominated by companies from developed nations. Asia became one of the largest sources of automobiles, machinery, audio equipment and other electronics.

At the end of 1997, Thailand was hit by currency speculators, and the value of the Baht along with its annual growth rate fell dramatically. Soon after, the crisis spread to Indonesia, Malaysia, South Korea, Hong Kong, Singapore and many other Asian economies, resulting in great economic damage on the affected countries (Japan largely escaped the crisis). In fact, some of the economies, most notably those of Thailand, Indonesia, and South Korea actually contracted. This later would be known as the Asian financial crisis. By 1999, most countries had already recovered from the crisis.

In 2001, almost all of the Asian and global Economies was affected by September 11 Attacks, with Indonesia and Japan was hardest. But, In 2002/2003, Asian and global Economies began to recover from 9/11 Attacks in United States.

In 2004, parts of Sumatra and South Asia were severely damaged by an earthquake and the subsequent tsunami. The tsunami wreaked havoc, causing massive damage in the infrastructure of the hit areas, particularly Indonesia, and displaced millions. For a short time, GDP contracted among nations such as Indonesia and Sri Lanka, despite massive inflow of foreign aid in the aftermath of the disaster.

Japan suffered its worst post-World War II economic stagnation set in the early 1990s (which coincided with the end of Cold War), which was triggered by the latter event of Asian financial crisis in 1997. It, however, rebounded strongly in early 2000s due to strong growth in exports, although unable to counteract China in 2005 after China gradually surpassed it as the largest economy in Asia.

2008-present

In 2008, the Global Financial Crisis, triggered by the housing bubble in the United States, caused a significant decline in the GDP of the majority of the European economies but have spared the Asian economies, when at the same time also experience slowdown in the economic growths, particularly Japan, South Korea, and China, only to pick-up back in their normal high growths at the end of the year.

The Arab Spring since 2011 had caused economic malaise in Syria, Lebanon and Yemen, amongst the most adversely affected nations in the Middle East. At the same time, in early 2010s, Iraq, Saudi Arabia, the United Arab Emirates and Kuwait registered high GDP growths in the years that followed due to increased oil prices and further diversification of exports, as well as rising Foreign exchange reserves.

In 2013, in a once-in-a-decade party leadership reshuffle in China (change of Hu-Wen Administration to Xi-Li Administration), the Chinese economy experienced a significant slowdown in the GDP growth, slowing down from the unprecedented decades of 9-10% annual growth to around 7-8%, which has significant effect in some developing economies, particularly in Southeast Asia and India, excluding the Philippines, which managed to grow at rates at par with China in the period 2012-2013. Philippines has been recently affected by the Typhoon Haiyan, the strongest storm on record, in early November, killing at least 5,200 and displacing millions more, while the disaster's economic effect remained uncertain.

Future

Asia's large economic disparities are a source of major continuing tension in the region.[citation needed] While global economic powers China, Japan, India, and South Korea continue powering through, and Indonesia, Malaysia, Philippines, Thailand, Vietnam and Sri Lanka have entered the path to long-term growth, regions right next to these countries are in severe need of assistance.

Given the large number cheap and amply available labor in the region, particularly in China and India, where large workforces provide an economical advantage over other countries, the rising standard of living will eventually lead to a slow-down. Asia is also riddled with political problems that threaten not just the economies, but the general stability of the region and world. The nuclear neighbors—Pakistan and India—constantly pose a threat to each other, causing their governments to heavily invest in military spending.

Military intervention by the United States in Iraq and Afghanistan has also inflamed extremism and resulted in several terrorist attacks in a number of Asian countries. Another impending crisis is the depletion of oil reserves in the Middle East. Most of these economies have traditionally been over-dependent on oil and have had difficulty establishing another pillar in their economies.

Yet another potential global danger posed by the economy of Asia is the growing accumulation of foreign exchange reserves. The countries/regions with the largest foreign reserves are mostly in Asia - China (Mainland - $2,454 billion & Hong Kong - $245 billion, June 2010), Japan ($1,019 billion, June 2009), Russia ($456 billion, April 2010), India ($284 billion, July 2010), Taiwan ($372 billion, September 2010), the Republic of Korea ($286 billion, July 2010), Singapore ($206 billion, July 2010). This increasingly means that the interchangeability of the Euro, USD, and GBP are heavily influenced by Asian central banks. Some economists in the western countries see this as a bad thing, prompting their respective governments to take action.

According to the World Bank, China may become the largest economy in the world sometime between 2020 and 2030, while India may become the second largest economy in the world sometime between 2030 and 2035.[9]

Based on Hurun Report, for the first time in 2012 Asia surpassed North America in amount of billionaires. More than 40 percent or 608 billionaires came from Asia, where as North America had 440 billionaires and Europe with 324 billionaires.[10]

Asian countries by GDP

Main article: List of Asian countries by GDP

This is a list of Asian countries sorted by their 2010 gross domestic product at market or government official exchange rates (nominal GDP) and PPP map is for year 2010.

2010 Nominal GDP and PPP list by the International Monetary Fund[11] (sortable; in billions of $US)

Country or
territory		 GDP nominal
millions of USD		 GDP PPP
millions of USD		 GDP PPP per capita
USD		 Location
Asia 18,515 24,077
 Afghanistan 16,631 29,616 1,000 South Asia
 Armenia 8,830 17,086 6,400 West Asia
 Azerbaijan 52,166 90,074 8,634 West Asia
 Bahrain 21,733 29,663 37,200 West Asia
 Bangladesh 105,402 257,545 1,600 South Asia
 Bhutan 1,397 3,785 5,600 South Asia
 Brunei 11,963 19,925 51,800 Southeast Asia
 Burma 35,646 76,240 1,197 Southeast Asia
 Cambodia 11,360 29,811 2,000 Southeast Asia
 China (PRC) 6,998,257 11,711,708 7,518 East Asia
 Cyprus 22,752 23,017 28,381 West Asia
 East Timor 616 3,062 2,600 Southeast Asia
 Georgia 11,234 22,194 4,500 West Asia
 Hong Kong SAR of China 226,485 322,486 45,736 East Asia
 India 1,847,966 4,679,392 3,417 South Asia
 Indonesia 706,735 1,029,884 5,100 Southeast Asia
 Iran 337,901 818,653 11,200 West Asia
 Iraq 84,136 115,330 3,600 West Asia
 Israel 201,254 218,490 29,500 West Asia
 Japan 5,885,872 4,319,432 32,817 East Asia
 Jordan 27,129 34,617 5,000 West Asia
 Kazakhstan 129,757 193,261 11,434 Central Asia
 North Korea 28,000 40,000 1,900 East Asia
 South Korea 1,007,084 1,459,246 30,200 East Asia
 Kuwait 117,316 138,099 38,293 West Asia
 Kyrgyzstan 4,444 11,772 2,162 Central Asia
 Laos 6,341 15,689 2,435 Southeast Asia
 Lebanon 39,149 59,906 15,331 West Asia
 Macau SAR of China 22,100 18,470 59,451 East Asia
 Malaysia 218,950 412,302 14,603 Southeast Asia
 Maldives 1,433 1,755 5,483 South Asia
 Mongolia 5,807 10,252 3,727 East Asia
   Nepal 19,108 41,231 1,450 South Asia
 Oman 53,782 78,100 26,197 West Asia
 Pakistan 164,792 464,711 2,789 South Asia
 Papua New Guinea 8,809 14,930 2,302 Southeast Asia
 Philippines 213,129 390,408 4,073 Southeast Asia
 Qatar 126,518 149,995 88,232 West Asia
 Russia 1,884,079 2,222,957 15,807 North Asia
 Saudi Arabia 434,440 619,826 23,742 West Asia
 Singapore 217,377 291,712 57,238 Southeast Asia
 Sri Lanka 48,241 104,124 5,103 South Asia
 Syria 59,633 105,324 5,108 West Asia
 Republic of China (Taiwan) 426,984 810,487 34,743 East Asia
 Tajikistan 5,578 14,529 1,907 Central Asia
 Thailand 352,605 784,768 10,243 Southeast Asia
 Turkey 729,051 960,511 13,392 West Asia
 Turkmenistan 27,960 35,883 6,597 Central Asia
 United Arab Emirates 239,650 186,908 36,973 West Asia
 Uzbekistan 37,724 85,363 3,022 Central Asia
 Vietnam 101,987 275,639 2,793 Southeast Asia
 Yemen 30,023 63,329 2,595 West Asia

Trade blocs

Asia-Pacific Trade Agreement

The Asia-Pacific Trade Agreement (APTA), formerly called the Bangkok Agreement, is the only trade agreement bringing together China and India, in addition to Bangladesh and the Republic of Korea, among others. The Secretariat of the agreement is provided by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). While the agreement covers only a limited number of products, members agreed in 2009 to implement a Trade Facilitation Framework Agreement aimed at streamlining trade procedures between members.

Asia-Pacific Economic Cooperation

The Asia-Pacific Economic Cooperation (APEC) is a group of Pacific Rim countries who meet with the purpose of improving economic and political ties. Although the initial intention was to create a free trade area covering all membership (which includes China, the United States and Australia, among others) this has failed to materialize.

Association of Southeast Asian Nations

The Association of Southeast Asian Nations (ASEAN) is a political, economic, and cultural organization of countries located in Southeast Asia. Founded in 1967, its aim is to foster cooperation and mutual assistance among members. The countries meet annually every November in summits.

The current member countries of ASEAN are Myanmar (Burma), Laos, Thailand, Cambodia, Vietnam, Philippines, Malaysia, Brunei Darussalam, Singapore and Indonesia. East Timor and Papua New Guinea is given an observer status.

In 2005 ASEAN was instrumental in establishing the East Asia Summit (involving all ASEAN members plus China, Japan, South Korea, India, Australia and New Zealand) which some have proposed may become in the future a trade bloc, the arrangements for which are far from certain and not yet clear.

The Asian Currency Unit (ACU) is a proposed currency unit for the ASEAN "10+3" economic circle. (ASEAN, the mainland of the People's Republic of China, India, Japan, and South Korea).

Closer Economic Partnership Arrangement

The Closer Economic Partnership Arrangement (CEPA) is an economic agreement between the People's Republic of China, the Hong Kong SAR government (signed on 29 June 2003), and the Macau SAR government (signed on 18 October 2003), in order to promote trade and investment facilitation.

The main aims of CEPA are to eliminate tariffs and non-tariff barrier on substantially all the trade in goods between the three, and achieve liberalization of trade in services through reduction or elimination of substantially all discriminatory measures.

Arab League

The Arab League is an association of Arab countries in Africa and Asia. The Arab League facilitates political, economic, cultural, scientific and social programs designed to promote the interests of its member states.

Commonwealth of Independent States

Flag of the Commonwealth of Independent States

The Commonwealth of Independent States (CIS) is a confederation consisting of 12 of the 15 states of the former Soviet Union, both Asian and European (the exceptions being the three Baltic states). Although the CIS has few supranational powers, it is more than a purely symbolic organization and possesses coordinating powers in the realm of trade, finance, lawmaking and security. The most significant issue for the CIS is the establishment of a full-fledged free trade zone / economic union between the member states, to be launched in 2005. It has also promoted cooperation on democratisation and cross-border crime prevention.

South Asian Association for Regional Cooperation

The South Asian Association for Regional Cooperation (SAARC) is an association of eight countries of South Asia, namely Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka and Afghanistan. These countries comprise an area of 5 130 746 km² and a fifth of the population of the world.

SAARC encourages cooperation in agriculture, rural development, science and technology, culture, health, population control, narcotics control and anti-terrorism.

South Asia Free Trade Agreement

The South Asia Free Trade Agreement is an agreement reached at the 12th South Asian Association for Regional Cooperation summit. It creates a framework for the creation of a free trade zone covering 1.6 billion people in India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives. It came into effect on 1 January 2006.

Currency

Below is a list of the currencies of Asia, including all fully Asian states plus Russia, with exchange rates between each currency and both the Euro and US dollars As of 29 November 2012 (2012-11-29).

Country Currency worth in Euro worth in USD Central bank
 Afghanistan Afghani 0.0146815 0.0190840 Da Afghanistan Bank
 Bahrain Dinar 2.04017 2.65196 Central Bank of Bahrain
 Bangladesh Taka 0.00947098 0.0123112 Bangladesh Bank
 Bhutan Ngultrum 0.0140550 0.0182699 Royal Monetary Authority of Bhutan
 Brunei Dollar 0.630467 0.819505 Brunei Currency and Monetary Board
 Cambodia Riel 0.000192329 0.000250000 National Bank of Cambodia
 China Yuan Renminbi 0.123454 0.160436 People's Bank of China
 Hong Kong SAR of China Dollar 0.0992796 0.129031 Hong Kong Monetary Authority
 India Rupee 0.0140502 0.0182700 Reserve Bank of India
 Indonesia Rupiah 0.000080108 0.000104167 Bank Indonesia
 Iran Rial 0.0000626622 0.0000815680 Central Bank of Iran
 Iraq Dinar 0.000660554 0.000859861 Central Bank of Iraq
 Israel Shekel 0.201359 0.261596 Bank of Israel
 Japan Yen 0.00938789 0.0122014 Bank of Japan
 Jordan Dinar 1.08704 1.41283 Central Bank of Jordan
 Kazakhstan Tenge 0.00511386 0.00664606 National Bank of Kazakhstan
 North Korea Won 0.00593337 0.00771112 Central Bank of the Democratic People's Republic of Korea
 South Korea Won 0.000710283 0.000922963 Bank of Korea
 Kuwait Dinar 2.73203 3.55032 Central Bank of Kuwait
 Kyrgyzstan Som 0.0162847 0.0211623 National Bank of the Kyrgyz Republic
 Laos Kip 0.000096581 0.000125508 Bank of the Lao P.D.R.
 Lebanon Pound 0.000511114 0.000664240 Banque du Liban
 Macau SAR of China Pataca 0.0963872 0.125273 Monetary Authority of Macao
 Malaysia Ringgit 0.252715 0.328380 Bank Negara Malaysia
 Maldives Rufiyaa 0.0500377 0.0650195 Maldives Monetary Authority
 Mongolia Tugrik 0.000551077 0.000716070 Bank of Mongolia
 Burma Kyat 0.000902842 0.00117302 Central Bank of Myanmar
   Nepal Rupee 0.00866687 0.0112615 Nepal Rastra Bank
 Oman Rial 1.99853 2.59673 Central Bank of Oman
 Pakistan Rupee 0.0079649 0.0103501 State Bank of Pakistan
 Palestine Shekel (Israeli) 0.201310 0.261596 Bank of Israel
 Philippines Peso 0.0188378 0.0244775 Central Bank of the Philippines
 Qatar Riyal 0.211375 0.274688 Qatar Central Bank
 Saudi Arabia Riyal 0.205219 0.266647 Saudi Arabian Monetary Agency
 Singapore Dollar 0.630600 0.819474 Monetary Authority of Singapore
 Sri Lanka Rupee 0.00590372 0.00767154 Central Bank of Sri Lanka
 Syria Pound 0.0108389 0.0140845 Central Bank of Syria
 Republic of China Dollar 0.0264881 0.0344169 Central Bank of the Republic of China
 Tajikistan Somoni 0.161364 0.209666 National Bank of Tajikistan
 Thailand Baht 0.0250420 0.0325345 Bank of Thailand
 Turkmenistan Manat 0.270089 0.350877 Central Bank of Turkmenistan
 United Arab Emirates Dirham 0.209569 0.272254 Central Bank of the United Arab Emirates
 Uzbekistan Som 0.000391012 0.000507990 Central Bank of the Republic of Uzbekistan
 Vietnam Dong 0.0000369482 0.0000480019 State Bank of Vietnam
 Yemen Rial 0.00357496 0.00464420 Central Bank of Yemen

Economic sectors

Primary sector

Asia is by a considerable margin the largest continent in the world, and is rich in natural resources. The vast expanse of the former Soviet Union, particularly that of Russia, contains a huge variety of metals, such as gold, iron, lead, titanium, uranium, and zinc. These metals are mined, but inefficiently due to continued use of poorly maintained, obsolete machinery left over from the communist era. Nevertheless, profits are high due to a commodity price boom in 2003/2004 caused largely by increased demand in China. Oil is Southwest Asia's most important natural resource. Saudi Arabia, Iraq, and Kuwait are rich in oil reserves and have benefited from recent oil price escalations.

Asia is home to some four billion people, and thus has a well established tradition in agriculture. High productivity in agriculture, especially of rice, allows high population density of many countries such as Bangladesh, Pakistan, southern China, Cambodia, India, and Vietnam. Agriculture constitutes a high portion of land usage in warm and humid areas of Asia.

Many hillsides are farmed in a terrace method to boost arable land. The main agricultural products in Asia include rice and wheat. Opium is one of major cash crops in Central and Southeast Asia, particularly in Afghanistan, though its production is prohibited everywhere. Forestry is extensive throughout Asia except Southwest and Central Asia, with many of the items of furniture sold in the developed nations made out of Asian timber. Fishing is a major source of food, particularly in Japan.

Secondary sector

The manufacturing sector in Asia has traditionally been strongest in the East region - particularly in China, Taiwan, Japan, South Korea and Singapore. The industry varies from manufacturing cheap low value goods such as toys to high-tech added value goods such as computers, CD players, Games consoles, mobile phones and cars. Major Asian manufacturing companies are mostly based in either South Korea or Japan. They include Samsung, Hyundai, LG, and Kia from South Korea, and Sony, Toyota, Toshiba, and Honda from Japan.

Many developed-nation firms from Europe, North America, Japan and South Korea have significant operations in the developing Asia to take advantage of the abundant supply of cheap labor. One of the major employers in manufacturing in Asia is the textile industry. Much of the world's supply of clothing and footwear now originates in Southeast Asia and South Asia, particularly in Vietnam, China, India, Thailand, Bangladesh, Pakistan, and Indonesia.

Tertiary sector

A view of the Tidel Park in Chennai. Software industries of late, have been outsourced to Asian cities as such for good infrastructure, efficient man-power & cheap labour.

Asia has six important financial centers, located in Singapore, Hong Kong, Shanghai, Tokyo, Dubai, and Mumbai. India has been one of the greatest beneficiaries of the economic boom. The country has emerged as one of the world's largest exporters of software and other information technology related services. World class Indian software giants such as Infosys, Hindustan Computers Limited, Wipro, Mahindra Satyam and Tata Consultancy Services have emerged as the world's most sought after service providers.

Call centers are also becoming major employers in India and Philippines due to the availability of many English speakers. Here again India holds close to 60% of the trade share. The rise of the Business Process Outsourcing (BPO) industry has seen the rise of India and China as the other financial centers. Experts believe that the current center of financial activity is moving toward "Chindia" - a name used for jointly referring to China and India - with Shanghai and Mumbai becoming major financial hubs in their own right.

Other growing technological and financial hubs include Dhaka (Bangladesh), Chennai (India), New Delhi (India), Chittagong (Bangladesh), Seoul (South Korea), Pune (India), Bangalore (India), Hyderabad (India), Shenzhen (China), Kolkata (India), Jakarta (Indonesia), Kuala Lumpur (Malaysia), Karachi (Pakistan), Lahore (Pakistan), Metro Manila (Philippines), Cebu (Philippines) and Bangkok (Thailand).

See also

Overview
GDP

References

  1. ↑ IMF WEO Oct. 2010 Retrieved on October 15, 2010
  2. ↑ Asian Millionaires Outnumber Those in North America, Report Says
  3. ↑ Professor M.D. Nalapat. Ensuring China's "Peaceful Rise". Accessed January 30, 2008.
  4. ↑ Dahlman, Carl J; Aubert, Jean-Eric. China and the Knowledge Economy: Seizing the 21st Century. WBI Development Studies. World Bank Publications. Accessed January 30, 2008.
  5. ↑ The Real Great Leap Forward. The Economist. Sept 30, 2004
  6. ↑ Chris Patten. Financial Times. Comment & Analysis: Why Europe is getting China so wrong. Accessed January 30, 2008.
  7. ↑ http://www.indianscience.org/essays/22-%20E--Gems%20&%20Minerals%20F.pdf
  8. ↑ Murray L Weidenbaum (1 January 1996). The Bamboo Network: How Expatriate Chinese Entrepreneurs are Creating a New Economic Superpower in Asia. Martin Kessler Books, Free Press. pp. 4–8. ISBN 978-0-684-82289-1. 
  9. ↑ World Bank China Office Research Working Paper No. 9 - China Through 2020: A Macroeconomic Scenario
  10. ↑ "Asia has the world's most billionaires: Survey". Retrieved March 11, 2013. 
  11. ↑ International Monetary Fund, World Economic Outlook Database, October 2010: Nominal GDP list of countries.
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