Asia-Pacific Region – 2021 Outlook
Asia Now Home to 60% of World Population
Asia’s population reached 4,662,428,290 based on United Nations estimates of January 15, 2021. This is the equivalent to 6 out of 10 people in the world today living in Asia.
China, Japan, Korea, and India are the largest GDP nations in Asia. For China itself, nine out of its top 20 import partners and 10 out of its top 20 export partners are from APAC. The largest free trade deal signed by 15 countries in Asia on November 15, 2020, through RCEP (The Regional Comprehensive Economic Partnership Agreement) is an important growth driver in Asia.
Industry Outlook
Asia’s outlook in 2021 is positive. The battle to contain the virus is likely to run well and we shall see a strong rebound in Asia late into 2021 & 2022. Companies are cutting costs, optimizing operations, and streamlining personnel to increase operational flexibility and protect profitability. Asian countries will rebound strongly due to vaccinations, strong global growth, and a very large consumer base.
Key Factors Affecting Asia 2021
1) China – USA trade friction should become more rational, multilateral, and less confrontational under the Biden. China’s impressive exports during the second half of 2020 elevated the current account surplus and will likely continue. A strong RMB and low inflation in 2021 is also expected.
2) India: Return to Growth Path in 2021. Stringent lockdowns in India are expected for most of 2021. As vaccines become available, the growth path is likely to return during the second half of 2021.
3) ASEAN: Return to a revival with RCEP. the 10 -member ASEAN nations unified their pre-existing bilateral agreements and created the largest Regional Comprehensive Economic Partnership Agreement (RCEP) with the largest trading partners being China, Indonesia, Japan, and South Korea. The RCEP will stimulate the ASEAN economy in 2021.
4) Digital Transformation Escalates: In addition to the traditional retail, supply chain, and manufacturing jobs in Asia, businesses are rapidly embracing and implementing digital transformation. To achieve that, they are searching for talents to help drive their business towards both technological and cultural customer-centric business models. There is also an increasing demand for hiring talent due to the 5G implementation and Internet of Things (IoT) industries of Cloud Computing, Artificial Intelligence (AI), Mobility (connected cars and autonomous driving),
5) An Aging Population is becoming a key factor in many parts of Asia. More healthcare and life science companies are looking for talent that would be essential in understanding and managing this side of the economy.
ASIA LEADS THE NEW NORMAL IN 2021:
The “New Normal” is driving increasing needs for companies to be agile and resilient to stay competitive in 2021. Cornerstone is your trusted partner and we ensure rapid redeployment of scenario-specific workforce and talent solutions that create practical values and desired outcomes for you.
Contact simon-wan@cornerstone-group.com for additional discussions.
