SEA's growing powerhouse set to beat Japan's economy by 2025

It could exceed US$4tr by then.

In view of the dynamism and scale of an integrated region, UOB’s projections show that even by growing annually at just about two-third of the pace that it was used to during the period of 2001 to 2013, the size of the 10-member ASEAN’s economy could exceed US$4 trillion by 2020, which is roughly the size of Germany in 2013.

According to a research note from UOB, this would also be nearly four times larger by 2030 at US$9 trillion, which is the size of China’s economy in 2013.

This means that going by UOB’s calculations, along the way after 2020, Southeast Asia’s economy would be larger than that of the UK and would overtake that of Japan by 2025.

This would make Southeast Asia as one of the world’s fastest-growing consumer markets as more enter the middle class status.

Here’s more from UOB:

We anticipate that by 2030, China’s economy would have expanded to US$28 trillion, just shy of the US economy’s size of US$29 trillion, but would have exceeded Eurozone’s economic size of about US$20 trillion by then.

We believe that these projections for Southeast Asia are achievable, going by recent developments in the region, including the opening up of Myanmar to the international community, presidential election in Indonesia and the return of stability in Thailand after the military coup that ousted former PM Yingluck among others.

In addition, the less-developed members such as Myanmar, Cambodia, Laos and Vietnam have plenty of room for growth and to catch up given their low starting bases.

In addition, we expect that pro-business policies will continue to be pursued by various member states within ASEAN, especially within the guiding framework of AEC starting from 2015 that will help to promote free flow of goods, services, investment and skilled labour, as well as freer flow of capital, all of which would serve to make the region into an enlarged production base and a consumer market.