Structural Transformation in Asia and the Pacific

Abstract

Many countries in Asia and the Pacific have experienced rapid economic growth and structural transformation in recent decades. Yet, some countries are still at an early stage of this structural transformation and face external conditions less favorable than those faced by the first movers when they were at a similar early stage in their transformation. The external environment is less auspicious, with trade tensions and “friend-shoring” leading to possible deglobalization, while demographic headwinds could also lower sustainable growth rates and induce technological changes, such as the increased use of robots, that reduce the possibility of relying upon labor-intensive development strategies.