Some of the Asian economies have grown tremendously in the past few decades. For example, communist China used to be closed third-world country with mostly an agrarian economy. Today the country is one of the largest economies in the world and has become the factory floor for the entire world. With a fast-growing middle-class population and rising income, Chinese consumers have become the sought-after customers for global multinationals.
Other Asian countries have also seen strong economic growth since the 60s. The following chart shows the growth in GDP per capita of select Asian countries since 1960:
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Source: Asia’s Crucial crossroad: Urbanization drives growth, Aberdeen Asset Management
South Korea’s GDP per capita rose from $92 in 1960 to an astonishing $25,391 this year. It should be noted that South Korea is technically a developed country today. But MSCI classifies it as an emerging country. India has lagged behind China in terms of economic growth.No wonder China attracts much more foreign investment capital than India.Another interesting factor to consider is that democracy hasn’t helped India beat China in economic growth as the chart above shows. In fact, the gap between the two countries’ GDP per capita is huge.
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