ASEAN’s GDP forecast to double by 2020

The ASEAN economy will more than double by 2020, with the nominal gross domestic product of the regional bloc increasing from $2 trillion in 2012 to $4.7 trillion, global research company IHS said in a report published recently.

IHS says that Vietnam and Myanmar are expected to reach a nominal GDP of $290 billion and $103 billion, respectively, by 2020 while Indonesia is expected to reach a projected nominal GDP of about $1.9 trillion.The report also says that overall, emerging markets in Asia are expected to be the fastest growing in the world and would continue to expand. It estimated that GDP growth of emerging markets would exceed that of developed countries in 2020, continuing to expand thereafter.

Intra-Asia partnerships will transform the landscape, the report said. Momentum is expected to continue with the potential implementation of the Asean Economic Community (AEC). However, IHS warned that it was unlikely that the AEC will achieve all its goals by 2015, while a partial achievement was possible as extensive negotiations were under way.

Despite its better than expected 6. 6 per cent gross GDP growth in 2012, the Philippines will lag behind other members of ASEAN in the long-term if it does not adopt the needed improvements, according to the Organisation of Economic Cooperation and Development (OECD).

In its report entitled “Southeast Asian Economic Outlook 2013,” the Paris-based OECD said that in many economic and development indicators, the Philippines can even be overtaken by newer and less developed neighbours if corrective measures are not implemented.