​Fast-growing ASEAN to trump China as world’s manufacturing hub

A report
from ANZ Bank has highlighted export opportunities in south-east Asia, and predicted
that the region will become the world’s third engine of economic growth,
following China and India.

The Courier Mail reports that the Association of South-East Asian nations is predicted to become a
major destination for Australian exports, with two-way trade to double by 2025 to
about $276 billion.

The
10-country grouping provided a fast-growing, youthful pool of workers, and was
handily located, meaning it “should draw more companies to establish
production bases in the region,” ANZ’s Andrew Geczy told The Australian Financial Review.

ASEAN, which
has grown at 6 per cent for the last decade compared to a global average of
about 4 per cent, offered new opportunities to exporters as China slows.

The
Australian
reports that exports to the ASEAN region had declined in recent
years, possibly due to a focus on trade with China.

“… [W]hile China is top of the mind in Australia, ASEAN
deserves more attention, particularly as progress continues towards the
formation of the ASEAN Economic Community, which will unlock a new phase of
growth,” Geczy told The Australian.

Major
opportunities existed for Australian exporters due in the region due to factors
such as the high rate of demand growth and infrastructure needs.

To read more about the ANZ report, ASEAN: The next horizon, click here.

Image: AP