Regional Focus: Asia Pacific presents a sound prospect to businesses thanks to rising disposable income

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Author:Countries and Consumers

Date published:12 May 2010

There are wide variations in disposable incomes and consumer expenditures across Asia Pacific, a region that encompasses industrialised states and emerging economies. The global recession had negative impacts on almost all of these countries, but the projected rise in disposable incomes, particularly in China and India, offer tremendous opportunities for businesses looking to explore the Asia Pacific region.

Key points

Regional patterns

China, India and Southeast Asia offer growth potential

Countries with high growth of disposable income and consumer expenditure present attractive opportunities for businesses:

Southeast Asian countries have also seen high growth in disposable income and consumer expenditure:

South Asian countries such as India and Pakistan have experienced slower growth due to higher population growth and less vibrant economies, but India's long-term fundamentals are intact:

The Northeast Asian industrialised nations of Japan, Taiwan and South Korea have the highest levels of disposable incomes and expenditures but low growth rates due to their mature and highly competitive markets:

Poverty and inequality

High levels of poverty and inequality, however, continue to restrict incomes and spending in the region:

Opportunities for businesses

While there are factors in the region restricting income and spending growth, the long-term trend is the emergence of a wealthier consumer market, driven by the growth of China and India:

Prospects

Major emerging economies in the Asia Pacific region are posed for a strong recovery following the global crisis:

Countries and Consumers

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