History will tell us that any emergence of a stronger middle class and their increased consumption of product and services are signs of a nation’s growth. For instance, the dramatic rise observed in Asian countries like China, India, and Indonesia has brought about the news of an unprecedented economic progress that could, in the long run, promote a corresponding development in both the political and social sectors.
The Asian economy is set to be the leading trade superpower in the world by 2025. This is because of the expected growth from intra-regional commerce, a boost from its present inter-regional trade. As a result, the rise of Asia’s middle class will promote the advent of an economic expansion, giving opportunities for both the international and domestic businesses within and outside the region.
For instance, China’s popularity and strength in the world’s market demand won’t just focus on the products they are known for like mobile phones or home appliances. Economists suggest that there will remain a significant demand for other goods and services, all thanks to the growing purchasing power of middles class consumers from the developing world.
Many believe that the emergence of a growing middle class consumer is a timely response to the declining export demand caused by the global economic crisis. With Asia’s economic contribution shifting towards domestic demand that targets household consumption, it will become less vulnerable to external stocks.
The great news is, the economic benefits that come with it won’t just be limited within Asian countries. In the long run, the imports to the continent’s regions will increase and a corresponding decline in the imbalance in the global trade is expected to promote a more sustainable economic growth around the world.