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Monday, January 31, 2011

The future is with Asia. With China and India taking the lead, Asian countries are expected to increase their share of world's economy. According to the report from World Economic Outlook, fast growing emerging markets are expected to record a growth of 6.6 percent per annum for the next five years till 2015 while advances economies are facing economic slowdown and forecast to grow at much lower, at 2.4 percent per annum.

The figures display the growing importance of fast growing and emerging markets, where most of them are residing in Asian continent. One of the contributing factors is due to the fact that many of Asian economies have not reach their maturity and therefore offer plenty rooms for growth. China, for instance, is a vast country with 1.3 billion population and a size of over 1 million square km. Though some parts of China can be regarded as advanced markets like Shanghai, Beijing and Guangzhou, there are many more provinces or cities in China that requires further development and these actually help to boost the domestic China economy. Likewise, India is another huge market of 1.1 billion population and disparity between advanced and less developed areas is still wide, hence there's still a lot of development to be undertaken in the country which this will help to spur the domestic economy. Other economics such as Indonesia, Vietnam and Thailand also have big domestic market and the increasing purchasing power help to boost economic growth of these economies.

Leveraging on the sustained economic growth in Asia, many foreign investors from advanced countries and middle east are exploring investment opportunities. That areas of opportunities include consumer products, services as well as property/real estate.

Monday, January 24, 2011

It is foreseen that Asian countries will be the future growth of world's economy. These Asian economies, spearheaded by China, are expected to boost their spending in infrastructure development for the benefit of its people, which in turn helping the people to have better living and contribute to the stability.

Due to growing business opportunities in the Asian economies, the people continue to prosper and spending power getting stronger. Countries like China, India, Indonesia and Vietnam can rely on their domestic market to continue registering steady economic growth despite what happened in the global market these past few years.

Back to China, the Government has introduced several measures to sustain its economic growth. The stimulus policy has helped the country to continue investing in infrastructure development especially in the least developed parts of China, such as the western and central China which include such provinces as Xinjiang, Ningxia and Innner Mongolia.

Saturday, January 22, 2011

It has been quite some time since my last posting. For the past 2 and half months I have been engaged with overseas business trips and just returned from my trips that covered different continents.

Still, many words around that China continues to post steady economic growth despite what happened in other economies like EU and USA. According to the World Bank's report on 5-year economic growth from 2008-2012, China is expected to post economic growth of more than 8% over these five years, and 2011 will see China growing around 8.5%, albeit a bit slower than previous year's growth of 9.5%.

China also continues to receive huge foreign domestic investment (FDI) from all over the world. Relatively speaking, the inflow of foreign investment is not only attributed to the fact that China offers abundance labor resources at competitive cost, but the more important reason for foreign investors to continue investing in China is the fact that China has a huge domestic market of 1.3 billion, the increasing number of middle income population (around 350-400 million) as well as continuous infrastructure development in China, in particular the second and third tier cities (western and northern part). These 2nd and 3rd tier cities offer huge market opportunities for foreign companies, both in products and services sector. The consumers' purchasing power is increasing which see them craving for imported goods and services, and the cities themselves are going through major evolvement to become more modern and developed cities in China.

If everyone can remember, during many global economic crisis that happened in 1998 and 2008/2009 as well as major epidemic like SARs in early 2003, China's economic growth still remain steady. This basically was supported by strong domestic investment as well as strong domestic consumer market and private consumption, despite China having one of the highest consumer saving rates in the world. This trend is expected to continue and China will continue to rely on its domestic investment and domestic consumer market for its steady economic growth, in addition to China's aggressive initiatives to undertake various forms of investment abroad and to maintain its current strong export performance.