Read this short article for a short guide on how the Asian continent is gradually rising in the financial world, and becoming the target of development focused investments.
Among the patterns that differentiate Asia from the rest of the so-called "Western" world is the balance of the working age population compared to non-working people, which is significantly greater in Asian countries. People in their working age tend to be more active potential buyers and invest more into their surrounding environments, which in turn can be a boost for the local economy. Subsequently, areas that have more prospective active buyers are most likely to see their economy prosper. The southeast Asia economic growth, which attracts investors like Citigroup and Orient Securities, is perhaps driven by the expected patterns regarding this proportion of the population, which differ throughout countries in the continent: south Asian nations see an expectation of increase in the portion of working age population, and while some east Asian nations are forecasted a gradual decline, their total numbers would still be greater than Western countries.
Among the instances that outline Asia as a growing market is the boost in foreign direct investment in Asia. What is referred to as impact investing, which is, supporting the growth of a country by supporting its businesses and advancement, is a growing phenomenon in the region, as shown by establishments like 3B Ventures and TinkBig. The landscape for impact investing in South Asia is generally active in the sectors of power, manufacturing markets, and financing.
One point about development is that it does not always require to be induced from outsiders: the trends analysed by the global impact investing network demonstrate that some of the most active supporters in this activity are Asian nations themselves, communicating with each other and supporting the development of the whole region. While, traditionally, this phenomenon was generally seen in the regions of the Western world, the current findings of impact investing in south-east Asia are highlighting an appealing pattern.
A pattern that has definitely been observed as part of the advancement of the region is the shift in involvement of its employees across sectors: from the so-called "primary" sector, which includes fields like agriculture, there has been a movement towards the "secondary" one, generally concentrated on industrial work with manufacture and production of physical commodities, and from the latter into the tertiary sector, dedicated to services and usually based in metropolitan areas. This pattern goes hand in hand with that of urbanisation, with a movement from rural areas into the cities, or alternatively a modification of the rural regions themselves into bigger metropolitan areas; these are absolutely indications of the advancement of southeast Asia having the fastest growing economy, and the reasons why investors like Elliott and BEA are keeping this section of the world in their minds.