Singapore and Malaysia are expected to see the greatest economic gains in the next year.
Singapore and Australia are also expected to continue to dominate the region, with Singapore expected to take in $3.5 trillion in new income over the next 12 months and Malaysia, the region’s third-biggest economy, likely to generate $1.5tr in revenue.
Malaysia is expected to lead the region in economic growth, while the US will be responsible for the bulk of the economic losses.
The Global South Asia Council (GASC) also released its annual Economic Outlook Report on Wednesday, forecasting the region will be able to post $5.5tn in new revenue by 2020.
It said the region would continue to experience high inflation and a growing economy, with a rise in the number of jobs and wages due to the low cost of living.
“The economic growth is likely to continue for the next two to three years, which is expected as the country is on the track to have a net gain in jobs, with the GDP increasing by 3.8% for the year ending 31 March 2020, compared to the previous year,” the report said.
“This will continue with continued strong growth in real GDP and real disposable incomes, and with net inflows of investment, with foreign direct investment and domestic direct investment coming into the region.”
It will be challenging for Singapore to meet its 2020 GDP targets, with growth of 4.3% for 2020 and 5.6% for 2021.
“Singapore, Malaysia and Brunei also recorded large increases in the amount of trade between them.
Australia and New Zealand will both remain important sources of foreign direct investments for the US and the EU. “
As Singapore continues to be the main export market for the region and as we are able to expand our trade with our neighbours, we will be a net exporter to Malaysia and a net importer to Singapore,” the GASC said.
Australia and New Zealand will both remain important sources of foreign direct investments for the US and the EU.
The report also predicted that Asia would see a return to growth in trade between countries in the region as a result of the Asia-Pacific Economic Cooperation (APEC) grouping and the European Union.
“A number of regional economies have been hit hard by the global downturn and will need to rebuild their economies to meet the economic needs of their customers and their populations in the near future,” the statement said.