Today’s economic and political turmoil often puts Asia at the forefront, with its economy officially surpassing the rest of the world, bringing in a new era of Asian leadership. However, it is important to recognize that Asia is not a monolith. Asia is about 45 million square kilometers in area, almost five times the size of Europe, and incredibly diverse. It contains about 2,300 languages compared to Europe’s 300, offering a wide range of cultures, languages, and political contexts. Economically, the region’s size and composition vary greatly.
Asia’s significant economic growth and role as a global manufacturing and trading center highlight its significant global influence. From 2015 to 2021, Asia accounted for 57% of global GDP growth. In 2021, it contributed 42% of global GDP (in purchasing power parity terms), outperforming other regions. Asia’s dominance in global trade is evident as it accounted for 53% of global goods trade in 2021 and 59% of trade growth from 2001 to 2021. According to a McKinsey report, Asian companies contribute approximately $19 trillion annually to the global economy. The continent is home to some of the world’s largest companies, including semiconductor giant Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM). In 2000, Asia accounted for less than one-third of world GDP in purchasing power parity terms. However, by 2040, the continent is expected to account for more than 50% of the world economy. Moreover, Asia will account for around 40% of global consumption by that time. China’s role is particularly important, with 56% of value flowing through the top 20 world trade corridors in which China participates in 2021.
Check out the top 5 most respected countries in Asia in 2024:
5. Singapore
- Human Development Index: 0.949
- Human Rights Index: 0.72
- Average: 0.834
Singapore, officially the Republic of Singapore, is an island nation and city-state in maritime Southeast Asia. A business-friendly environment supported by stable infrastructure and a robust political climate attracts domestic and international investors. According to the Ministry of Trade and Industry (MTI), the Singapore economy grew at a faster pace than expected in the first quarter of 2024. This GDP growth was mainly driven by the finance, transport and wholesale sectors, with the finance and insurance sector recording year-on-year growth of 6.5%, up from 5.4% in the previous quarter.
4. Israel
- Human Development Index: 0.915
- Human Rights Index: 0.81
- Average: 0.862
Israel is one of the most respected countries in Asia and is known for its advanced technological and economic strength, ranking second in the world. It has the highest number of start-ups in the world. It is also considered the fourth most democratic country on the continent. Israel’s economic resilience is fueled by diverse sectors including high-tech and industrial manufacturing, as well as dominance in diamond cutting and polishing, which accounts for a significant portion of its exports.
3. Cyprus
- Human Development Index: 0.907
- Human Rights Index: 0.9
- Average: 0.903
Cyprus is an island nation located geographically in Western Asia and in the Eastern Mediterranean Sea. Since joining the Eurozone on January 1, 2008, the Republic of Cyprus has become an increasingly popular tourist destination, combining a rich cultural heritage with stunning natural scenery. Cyprus’ technology sector accounts for 13% of the country’s GDP, and its reliance on tourism is only increasing. The country is home to over 300 fintech companies.
2. South Korea
- Human Development Index: 0.929
- Human Rights Index: 0.88
- Average: 0.904
South Korea is one of the world’s most advanced industrialized economies and is recognized globally for its leadership in technology, manufacturing, and innovation. In the first quarter of 2024, the Korean economy recorded its highest growth rate in the past two years. Seasonally adjusted GDP increased 1.3% over the previous three months. South Korea also ranks highly in the UNDP Human Development Index, reaching a score of 0.929 in 2023, placing it in the “very high human development” category.
1. Japan
- Human Development Index: 0.920
- Human Rights Index: 0.93
- Average: 0.925
Japan tops the list as the most respected country in Asia, and its reputation is built on its innovative strength and manufacturing expertise. These strengths have made Japan one of the world’s largest economies. This is evident as Japan’s per capita GDP reaches more than $52,000 per year in 2023. With an average salary of $45,000, it is also one of the countries with the highest average salaries in Asia.
In terms of tourism, more than 14.5 million people visited Japan in the first five months of the year, according to the Japan Tourism Association. This represents a 70% increase compared to the same period last year, putting Japan on track to surpass its 2019 visitor record of 31 million.