We recently compiled a report on the 15 most respected countries in Asia in 2024 and in this article we will look at the most respected country.
Today’s economic and political disruptions frequently position Asia at the forefront, as its economy has officially surpassed any other region in the world, bringing in a new era of Asian leadership. However, it’s important to recognize that Asia is not a monolithic entity. Spanning about 45 million square kilometers, nearly five times the size of Europe, Asia is incredibly diverse, encompassing around 2,300 languages compared to Europe’s 300, and featuring a wide array of cultural, linguistic, and political landscapes. Economically, the region exhibits significant variations in scale and composition.
Asia: The World’s Trade Hub
Asia’s substantial economic growth and role as the global manufacturing and trade hub underscore its critical global influence. Between 2015 and 2021, Asia accounted for 57% of global GDP growth. In 2021, it contributed 42% of the world’s GDP (at purchasing power parity), surpassing any other region. Asia’s dominance in global trade is evident, as it accounted for 53% of global goods trade in 2021, and 59% of trade growth between 2001 and 2021. According to a report by McKinsey, Asian corporations contribute approximately $19 trillion to the global economy annually. The continent is home to some of the world’s largest corporations, including semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Back in 2000, Asia accounted for less than one-third of the world’s GDP in purchasing power parity terms. However, by 2040, the continent is expected to constitute more than 50% of the global economy. Additionally, by that time, Asia will also account for about 40% of the world’s consumption. China’s role is particularly significant, with 56% of the value flowing through the 20 largest global trade corridors involving China in 2021.
Narrowing on South Asia, the sub-region is projected to experience strong growth at 6.0% in 2024, primarily fueled by robust growth in India and economic recoveries in Pakistan and Sri Lanka. However, persistent structural challenges threaten sustained growth, hindering job creation and climate resilience. That said, the Jobs for Resilience report suggests that the region will remain the fastest-growing in the world for the next few years, with growth projected at 6.1% in 2025. However, despite this positive outlook, South Asia still faces significant challenges. Many countries in the region lack economic freedom, political stability, financial transparency, comprehensive market and labor reforms, and sufficient GDP growth. Growth in most countries remains below pre-pandemic levels and is heavily reliant on public spending. Additionally, private investment growth has slowed sharply across the region, and job creation is insufficient to keep pace with the rapidly increasing working-age population.
Over the past decade, numerous large corporations have outsourced parts of their operations to Asian countries. Apple Inc. (NASDAQ:AAPL), for example, is deepening its engagement with China while also expanding production in Southeast Asia and India, highlighting the company’s delicate balancing act between political pressures and business needs. In 2023, the company increased its number of China-based suppliers and manufacturing sites, reducing its dependence on suppliers from Taiwan, the U.S., Japan, and South Korea. Since 2020, Chinese suppliers have become the largest group within Apple’s supplier network, growing to 52 in the past year from 48 in 2022. As Apple Inc. (NASDAQ:AAPL) accelerates its supply chain shift to Southeast Asia amid the ongoing U.S.-China tech conflict, its ties with China continue to strengthen. Moreover, CEO Tim Cook emphasized the company’s success in South Asian markets, achieving all-time records in countries such as India. Analysts predict that in the coming years, Apple Inc. (NASDAQ:AAPL) will increasingly focus on countries like Indonesia, Malaysia, and India, which are expected to become significant contributors to the company’s global market share.
Photo by Jezael Melgoza on Unsplash
Our Methodology
To compile our list of the most respected countries in Asia, we utilized the Human Development Index (HDI) and the Human Rights Index (V-Dem 2023). By averaging the scores from both indices, we derived an overall index score. The HDI evaluates a country’s well-being through factors such as education, life expectancy, and income. In contrast, the Human Rights Index assesses respect for human rights, emphasizing civil liberties and political freedoms, providing a comprehensive view that complements the HDI. A country excelling in both indices demonstrates a balanced approach, reflecting a society where individuals thrive economically and within a framework of justice and fairness. Such nations are globally respected for valuing both human development and human rights.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
The Most Respected Country in Asia in 2024
1. Japan
Human Development Index: 0.920
Human Rights Index: 0.93
Insider Monkey Average: 0.925
Japan tops our list as the most respected country in Asia, a reputation built on its innovation and manufacturing prowess. These strengths have helped Japan become one of the largest economies in the world, evidenced by Japan’s per capita GDP reaching over $52,000 per year in 2023. With an average salary of $45,000, it is also among the countries with the highest average salaries in Asia.
Regarding tourism, more than 14.5 million people visited Japan in the first five months of this year, according to the Japan National Tourism Organization. This represents a 70% increase compared to the same period last year and puts Japan on track to surpass 2019’s record of 31 million visitors.
Curious to learn about other most respected Asian countries? Check out our report on the 15 most respected countries in Asia in 2024.
At Insider Monkey, we jump into a whole host of topics; however, our expertise lies in identifying the top performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
Disclosure: None. This article is originally published on Insider Monkey.