As with any crisis, COVID-19 and its resulting economic impact have exacerbated differences between countries. Many of the world’s most dynamic countries are in Asia, particularly China that suffered no recession in 2020. The pandemic has accentuated the global economy's shift towards the East. The growth of the middle classes, infrastructure development and accelerated incorporation of new technologies are strong growth drivers which will remain important for the rest of the decade. For French businesses, the meaning is clear: to continue to be a player on the international business stage, we must increasingly look to Asia, provided that we understand the characteristics of each market, have a strategy for increasing local presence and have adequate in-market support.
Solid Economic Recovery
According to the latest World Economic Outlook report published by the International Monetary Fund (IMF) in April 2021, emerging Asian countries showed an average economic growth rate of 4.3% for the 2019-2021 period, which is well above the global average (+1.8%). This dynamic should continue in 2022 (+6%).
The Importance of In-Market Support
Asia is a highly diverse region. Each country has its idiosyncrasies (economy size, purchasing power, economic activities, business environment, etc.), and so each one's unique situation must first be carefully considered.
