The financial crisis is on the verge of ending as the global economy gradually recovers from it. A broad based pickup is evident and it seems that Asia is leading the charge. It is clearly maintaining their position as the fastest growing region in terms of economy. The leaders of this growth are India and China.
OECD or Organization for Economic Cooperation and Development suggested in their latest Economic Outlook report that the monetary and fiscal stimulus has underpinned an improvement in a synchronized way in growth rates of most countries. OECD forecasts an expansion of 3.6% globally this year and will rise to 3.7% next year.
For Asia region, OECD projected further expansions. A 6.8% rise is expected from China and this would ease to 6.6% in 2018 and 6.4% in 2019. This is because the authorities are planning to rebalance the model of growth for the second largest economy of the world.
The third largest economy, Japan is also seen extending their longest expansion in almost twenty years with a 1.5% rise in GDP this year. This is going to be followed with a 1% growth for the coming two years, as a consumption tax hike is expected and labor force is declining in Japan.
South Korea is also sustaining a 3% growth through 2019 due to stronger trade globally and fiscal support, but high debt and weak growth of employment might weigh on this.
India, is one of the emerging stars with an expected surge from a 6.7% GDP growth this year to about 7% in 2018 and 7.4% in 2019 as productivity, investment and growth boosts have been seen due to government reforms.
All these countries including other Asian emerging economies like Philippines and Vietnam have made Asian economy on the verge of being the fastest growing economy all through 2030.