- Category: Asean Economic Community
18 Sep 2013
Real gross domestic product (GDP) per capita in the Association of Southeast Asian Nations (Asean), taking into account differences in purchasing power parity, had virtually doubled from $2,882 in 2000, to $5,581 in 2011.
Growth is strong in both country groups—the Asean6 (Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand) and CLMV (Cambodia, Lao PDR, Myanmar and Vietnam). The CLMV countries posted robust growth, narrowing the gap with the Asean6. Comparing the Asean6 and their CLMV brothers, the growth of per-capita GDP (in constant PPP$) was 3.4 in 2000, and only 2.6 in 2011.
Rapid growth of Asean trade in goods and services
ASEAN trade in goods among its member-states more than doubled from $260.9 billion in 2004, to $598.2 billion in 2011. For the same period, extra-Asean trade grew from $428.1 billion to $914.8 billion. The gap between Asean and CLMV countries has decreased. Intra-Asean trade share in Asean trade slightly increased from 24.3 percent to 25 percent during the same period.
Trade in services increased rapidly in Communications, Computer and Information services; Travel services; and Business services, royalties and licenses. Trade in Transport services has recovered from a substantial decline in 2008 brought by the global financial crisis. Asean’s deficit on trade in services contracted by 37 percent from around $22 billion in 2005 to less than $9 billion in 2011.
Asean has become a popular FDI destination
Inward flow of foreign direct investment (FDI) to Asean has recorded an increase of more than fourfold—from $21.81 billion in 2000 to $114.08 billion in 2011—with Singapore, Indonesia and Malaysia leading the Member States. Intra-Asean FDI inflow has increased from 3.9 percent to 23 percent during the same period.
Living conditions in the Asean has improved
The proportion of population living on less than $1.25 a day (in purchasing power parity terms) in Asean has declined between 2000 and 2010, from around 45 percent to 16 percent in CLMV countries and from about 29 percent to 15 percent in the Asean.
The Asean region showed progress in terms of the United Nation’s broader Human Development Index, which rose from 0.635 in 2005 to 0.657 in 2010 as the CLMV countries almost leveled up to the Asean, nearly closing the gap—down from 25 percent to 23 percent.
The ACPMS Report also carries cross-pillar indicators, which reflect favourable developments in the economic and sociocultural areas indicating the convergence of markets and improved trends of poverty incidence and overall human development.