JETRO: Rapid Globalization To Spur Emerging Asia’s Outperformance

In the latest monthly outlook “Japan Looks for Economic Growth in Emerging Asia” by Japan External Trade Organization (JETRO), a Japan government owned trade organization, JETRO cites Emerging Asia’s economic prospects as very promising. (hat tip: Keith Rabin of KWR International)

The reason: (bold emphasis mine)

The dynamics of the global economy are changing. During the past century, global economic growth was primarily driven by activity in the “the three locomotives,” the US, EU and Japan.

Rapid globalization, however, is leading to new innovations, such as the proliferation of highspeed telecommunications and enhanced logistical infrastructure. This is resulting in a more connected, multi-faceted world. Economically, these changes allow companies to coordinate over long distances to optimize their supply chains and reduce their cost structure by moving production to developing economies. Building from a lower income baseline, stronger growth is helping to raise living standards and turn these developing economies into markets in their own right. As a result, they are now becoming the primary incremental drivers of global consumption and production.

And Emerging Asia's thrust towards deeper globalization have been anchored on manifold Free Trade Agreements (FTA) which would not only integrate Asia but foster more free trade with the world.