Jakarta, Indonesianpost.com – ASEAN is forecast to be the world’s fourth-largest economy by 2030 as its combined gross domestic product (GDP) already reaches trillions of American dollars, according to the bloc’s secretary-general Kao Kim Hourn.
ASEAN has a combined GDP of approximately $3.7 trillion with over 670 million people in population size.
“This makes ASEAN the third-largest economy in Asia and the fifth-largest in the world. By 2030, ASEAN is projected to be the fourth-largest in the world,” Kao said when kicking off the ASEAN 56th Anniversary ceremony in Jakarta on Tuesday.
An economic integration brief released by ASEAN last month predicted that the Southeast Asian bloc was on track to be in the world’s top four largest economies, just behind the US, China, and India. The report attributed this growth to the young population. About 60 percent of ASEAN’s total population is currently under the age of 35. Half of the population will join the middle class by 2030.
Mahendra Siregar, the chairman of the Financial Services Authority (OJK), also commented on ASEAN’s economic prospects.
According to Mahendra, ASEAN can benefit from the neutral stance that it adopts amidst rising geo-economic tension. The 10-member grouping can develop its global value chain that not only serves the domestic market but also exports its products beyond the region.
“Amidst geo-economic competition, [countries] are also trying to readjust their investment to different parts of the world. ASEAN has never been seen as taking sides. This is a good opportunity,” Mahendra told a discussion at the ASEAN Secretariat later during the day.
“At the same time, ASEAN needs to improve its integrated economy by keeping the stability and inflation in check, while also opening up trade and investment opportunities to everybody,” Mahendra said.