Asia to account for half of global GDP by 2050 – Citi

MANILA, Philippines - Asian economies will account for half of the world’s gross domestic product (GDP) by 2050 with China emerging as the largest economy and India the third largest, a top Citi official said.

Citi Philippines chief executive officer Batara Sianturi said North America, Europe and the Middle East will likely account for two-thirds to a third of global GDP.

“In many ways, globalization is just beginning,” Sianturi said during a forum on Asia’s emerging corporates last week.

East Asia alone accounts for 26.5 percent of global GDP, based on 2000 data.

On the corporate side, Asian companies have demonstrated entrepreneurial vision with bold strategies for growing outside domestic markets, Sianturi noted.

He said Asia now accounts for close to 10 percent of the MSCI Global Index – a doubling in five years. It is expected to reach 20 percent by 2020.

There are 181 Asian companies currently in the Fortune 500 list and this region now accounts for over 40 percent of global trade, doubling over the last decade. 

Asia’s global share of corporate revenues has also doubled from 12 to 25 percent in the last 10 years.

“One of the defining trends of this generation is globalization and this had led to the rise of a new breed of aspirational corporate titans across Asia – the so called emerging champions,” Sianturi added.