"Asia's Economic Transformation" - Key Indicators for Asia and the Pacific 2013

"ASIA'S ECONOMIC TRANSFORMATION" KEY INDICATORS FOR ASIA AND THE PACIFIC 2013 The Asian Development Bank's (ADB's) flagship annual statistical publication emphasizes that manufacturing is a prerequisite to a high productivity service sector, technological innovation, and modernizing agriculture. KEY INDICATORS AI Aaio and the Paciio 2013 Saobmatiano INDUSTRIALIZATION MUST BE AN ESSENTIAL PART OF THE GROWTH FORMULA IF ASIAN COUNTRIES WANT TO PROSPER AND AVOID THE MIDDLE INCOME TRAP | ASIA'S TRANSFORMATION HAS BEEN FAST, BUT QUITE UNEVEN One group of economies - Hong Kong, China; Japan; the Republic of Korea; and Taipei,China - rapidly industrialized to become high income countries Some countries, including the People's Republic of China, Malaysia, and Thailand, are transforming more slowly Other developing Asian nations, such as Bangladesh, India, Pakistan, or the Philippines, are changing even more slowly | ASIA IS A SERVICE AND AGRICULTURE REGION The service sector accounted for almost half of the region's GDP in 2010 Agriculture is Asia's smallest sector in GDP, but is still the largest employer in many Asian economies with over 700 million working in the sector almost 50% 700 MILLION | FACTORY ASIA MANUFACTURING EMPLOYMENT SHARES During the last decades, many Asian economies attained high manufacturing output shares for a sustained period, 25%-35% of GDP, on par or even higher than the shares attained by OECD countries during the 1960s and 1970s 25% 10% to to 25%-35% OF GDP 30% 15% Japan, the newly industrialized economies, and Malaysia at peak industrialization most other Asian economies today | BECOMING A HIGH-INCOME ECONOMY PROBABILITY OF BECOMING A HIGH-INCOME ECONOMY Using a sample of 109 economies, ADB has found that almost no economy has become high income without manufacturing output and employment shares reaching 18% or above 18% 41% 60 5% 20 if manufacturing shares in both GDP and total employment are at least 18% if manufacturing sector is small SOURCE • Asian Development Bank (2013). Key Indicators for Asia and the Pacific 2013 ADB Asian Development Bank FIGHTING POVERTY IN ASIA AND THE PACIFIC wwW.ADB.ORG