It’s fair to say that 2020 was a disaster both for families and the wider economy in Asia.
However, the hope is that 2021 will be much better, and already we are seeing signs that conditions are improving for individuals and businesses alike.
Big research companies such as PwC are predicting that the global economy will grow by 5% this year alone, and Asian countries will undoubtedly be able to piggyback on that as they become more flexible in how they create revenue.
That same study from PwC reveals that India’s GDP will reach $2.8trn in 2021, which is down slightly from the $2.9trn of 2019 but up quite markedly on the figures recorded last year.
Where is this recovery coming from? And which Eastern countries/economies will thrive in 2021?
Betting on gas and oil
Fundamentally, it is those countries that produce oil, gas and other natural resources that are expected to flourish most in 2021.
Demand for international travel is expected to increase exponentially as restrictions are lifted, and demand in aviation and other forms of transportation for petrol will also increase as a result.
Therefore, countries such as Saudi Arabia, Kuwait and Qatar are likely to be the chief beneficiaries, and investing in their companies could be a smart move. Note, however, that there could be an ideological shift towards renewable energies and firms that mine for natural resources in a more ethical fashion.
As any forex for dummies guide will teach you, the aim is to identify those currency pairs where an improvement in value is expected, and already we are seeing a bounce back from the Saudi riyal – it will be worth watching this closely throughout 2021.
Another country in Asia expected to enjoy growth this year is Cambodia, a small nation that is developing into a key tourism hotspot for Westerners and also travellers from China and Japan. The Chinese influence in Cambodia is expanding year on year, and considerable investment in real estate – and the necessary infrastructure – from overseas has ensured that the Cambodian economy will recover faster than many smaller Eastern countries in 2021.
Focus on India
In terms of real growth, the International Monetary Fund has marked out India and Bangladesh as two countries that will also enjoy growth this year and beyond. In India, the production of electronic goods and manufacturing will continue at pace, and as consumption and retail bounces back in 2021, so too will exports – crucial to the Indian economy.
As the global vaccination programme is rolled out, there will be an increased demand – and acceptance of – both domestic and international travel into India, and this will help to boost the coffers as more money flows into the country.
We have already seen a limited number of spectators return to the stands at India’s recent cricket matches against England, and the hope is that other forms of entertainment will also start welcoming back paying people in the near future – another timely economic boost.
There are plenty of reasons for people in India and other Eastern countries to be positive amid the heartache of the COVID-19 pandemic, and 2021 could be a fantastic year for recovery and growth.
