Asia's Increasingly Inter-Regional Trade

By 2030, Asia's largest nations will predominantly trade with themselves, wth developed markets, such as the United States and European Union, becoming less important as a direct consumer of Asian exports.

Inter-Regional Trade as a % of Total Trade Between 11 Asian Countries, 2011-2020 vs. 2021-2030

Source: IMF, Roland Berger

This is, of course, a oversimplistic view. The United States and Europe will remain key export markets for Asian countries' finished goods and services. Trade in intermediate goods for processing before shipping to developed markets will be an important source of trade volumes in the Asia-Pacific region.

However, with economies in the region shifting to domestic demand led economic models, Asian countries will increasingly become markets of final demand.

One of the keys to achieving this highly integrated trading bloc lies with trade liberalization and the tearing down of trade barriers between countries. Also, infrastructure build-out is increasingly vital to act as the basis for this grand future.

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