Asia-Pacific is seen as a global destination for investment, it is stated in a new report issued by the United Nations. Asia-Pacific has always been seen as integral to global economic policies. It is also in proximity with the Indian Ocean.
It is said in the report that Asia-Pacific has a combined GDP of 27.25 trillion and is growing further. It is on way to become the top market in terms global destination for investment.
According to the report “Enhancing Regional Economic Cooperation and Integration in Asia and the Pacific’ issued by the UN Economic and Social Commission for Asia and the Pacific (ESCAP), this will enhance the economic growth of the region greatly. It will help tackle problems such as poverty and unemployment.
Asia-Pacific has populous countries like China, Pakistan and India and has ideal location which enhances its importance. Furthermore, the Belt and Road Initiative (BRI) announced by China is 2013 has been termed as a game changer. It has further enhanced the market of Asia.
BRI plans to connect Asia, Africa and Europe, which is expected to cater a population of around 4 billion.
The initiative plans to enhance connectivity through a multi-modal network that connects road and rail routes with seaports, expands energy networks through oil and gas pipelines and regional power grids, and extends ICT fiber optic.
Investment outflows from developing Asian economies touched $323 billion in 2015. It denotes to 30% of global foreign direct investment (FDI) flows.
It is recommended that regional coordination be enhanced to further improve the appeal of Asia-Pacific. Furthermore, attention also needs to be given to sustainable development.
This would enable countries to not only attract more FDI to contribute to sustainable development, but also to achieve better market integration.