According to Asian Cities & Regions Outlook 2016 by Oxford Economics, Delhi will have the fastest growth among all Asian cities with the economy growing almost 50 percent larger in 2021 than it was at the end of last year.
Highlights of Asian Cities & Regions Outlook 2016:
As per the study from Oxford Economics which ranked Asia’s 30 largest cities, Indian cities are set to expand the most across the region, with growth speeding up from the past 5 years.
- With financial and business services projected to be the fastest growing sector in India, Delhi’s dominance in this industry will lead to higher growth and higher incomes.
- Citing that limits on foreign ownership of Indian companies are gradually being reduced or eliminated, Mark Britton, lead economist of the report mentioned that in the short term, this is conducive to strong growth in Delhi’s professional services sector, while in the long term, it will transpire into income streams for such businesses.
- The study outlined that there will be a slight slowdown across the region amid moderating import demand from China, with growth expected to average 4.2 percent per year over the five years to 2021, down from 4.5 percent in 2012-2016.
- China’s expansion will slow, although its largest five cities will still be recording growth rates of 6 percent or more. Tianjin is forecasted to clock the fastest growth in China; given that it has a large manufacturing base and one of the nation’s busiest ports.
- Japanese cities are likely to remain at the bottom amid a challenging demographic outlook.
- Ho Chi Minh was the only non-Indian city in the top five, reflecting the city’s success in establishing itself as a manufacturing center, as well as its strong services sector.
About Oxford Economics:
Oxford Economics was founded in 1981 as a commercial venture with Oxford University’s business college to provide economic forecasting and modelling to UK companies and financial institutions abroad.
- Headquartered in Oxford, England, with regional centres in London, New York, and Singapore, Oxford Economics has more than 20 offices across the globe.
- It employs over 300 full-time staff, including 200 professional economists, industry experts and business editors.