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| • | Asia rising. As COVID-19 eases and global trade resumes, Asia is on track to become the best performing region globally. The region’s nominal GDP is expected to expand from $33 trillion in 2021 to $39 trillion in 2023. In comparison, the nominal GDP in the Americas and Europe over the next two years is projected to reach $34 trillion and $26 trillion, respectively. Unlike that of other regions, Asia’s growth story will be backed by a revival in exports, capital expenditure, and productivity growth, rather than reliance on leverage and government stimulus. [FT] | | | | • | Rebound in India. One of Asia’s fastest-growing economies is also showing signs of bouncing back. After recording a 7.3% contraction in GDP in FY 2021–22, India is forecasted to grow 8–8.5% in the financial year beginning in April. Following reports of stabilization in Omicron cases in certain areas, some states in India have relaxed restrictions, resulting in a pickup in economic activity. [AP] | | | | • | A widening gap. Asian corporations have lately struggled to create economic value. In the decade before the COVID-19 pandemic, more companies in Asia lost economic profit than created it, even though $1 of every $2 in new global investment went to companies in Asia. The pandemic has further widened the gap between leaders and laggards. | | | | • | A broader role. Companies in Asia can capitalize on the region’s economic growth to enhance their performance. Corporations are hugely important to economies, accounting for 72% of GDP in OECD advanced economies, according to MGI research. But in addition to boosting capital investment, employment levels, and labor productivity, businesses must also play a broader role in society. Read the article to learn five capabilities that companies in Asia need to stay competitive and succeed in the next normal. | | | | — Edited by Arshiya Khullar | | This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. | | You received this email because you subscribed to the On Point newsletter. | | | | Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007 | | | |
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