• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Asia’s Economies Can Embrace Services to Boost Growth and Productivity

10 months ago
in Business, Features, highlights, Home, home-news, latest News
3 min read
0 0
0
62
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Asia’s Economies Can Embrace Services to Boost Growth and Productivity

The Asia-Pacific region prospered by becoming the source of more than half of global factory output, but another transformation to higher-productivity services has the potential to further support growth.

Employment and production typically move from agriculture to manufacturing to services, as part of natural progression that comes with rising income. Today, many Asian countries—including China, Indonesia, Korea, and Thailand—are highly industrialized. If history is a guide, industry’s share of production will shrink as more activity passes to services.

Indeed, the growth of services has already drawn about half of the region’s workers into that sector, up from just 22 percent in 1990, as hundreds of millions moved from farms and factories. This shift is likely to accelerate with further expansion of international trade in modern services such as finance, information, and communication technology, as well as business outsourcing (for example, as already done in India and the Philippines). By contrast, traditional services—for example, tourism or distribution services—have lower productivity and contribute less to economic growth.

chart showing where Asian countries lie in terms of being more agricultural, industrialized, or services-dominant economies

Policymakers should embrace this shift to modern services because they have higher productivity, as we show in an analytical note accompanying our October 2024 Asia-Pacific Regional Economic Outlook. Transitioning to a more services-led economy comes with greater economic growth opportunities, provided the right policies are in place.

Productivity is an important variable when considering which sectors can best deliver growth in coming years. Manufacturing productivity in Asia is already close to the level of global leaders, so further improvement offers only limited scope to boost productivity and growth. By contrast, services in Asia don’t enjoy the same efficiency advantage, so the region’s economies have more to gain by catching up with countries that have the most efficient services sectors.

RelatedPosts

FEC 2025: NRGI Warns Fossil Fuel Investments Risk Undermining Africa’s Energy Transition; Lists Innovative Financing Instruments to Plug Transition Funding Shortfall

Kwesi Appiah: The Ghanaian Legend Rewriting Sudan’s Football Story Amid War

Cadillac Signs Sergio Perez and Valtteri Bottas for 2026 F1 Debut

In addition, in several services sectors like finance and business services, productivity is higher than in manufacturing, which means greater contributions to growth. For example, Asia’s labor productivity in financial services is four times higher than in manufacturing, and it’s twice as high in business services, our new analysis shows.

chart showing median labor productivity in Asia relative to manufacturing

Even so, countries need to have the right conditions in place to benefit from services. Manufacturing benefited from low trade costs and greater global integration, but services sectors are relatively protected in Asia, which can hamper progress. Just like Asia’s higher tariffs on agriculture, which average 12 percent versus 7.5 percent globally, foreign companies that hope to enter the services sector face various restrictions. These include outright bans, approval requirements, local presence, and higher tax rates.

Policymakers should also recognize that workers leaving agriculture and manufacturing need the skills to find good jobs in services. With waves of new digital technologies replacing some jobs like clerical support, policies should ensure widespread internet and technology access, and introduce education and training to develop a digitally skilled workforce capable of leveraging artificial intelligence.

With growth projected to slow in many Asian countries due to rapid aging, boosting productivity by nurturing productive services is a key to Asia’s future success.

Tags: AsiaAsia’s Economies Can Embrace Services to Boost Growth and ProductivityGrowth and Productivity

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Highlights

FEC 2025: Energy Minister Warns African Gov’ts Cannot Sustain Energy Financing Burden; Urges Stronger Private Sector Role in Continent’s Energy Financing

ACEP Pushes for Bold Financing Models to Tackle Africa’s Energy Poverty at FEC 2025

The Rise of Women-Tailored Insurance Policies in Africa

Energy Ministry, NPA Engage Industry on Proposed Petroleum Sector Legislation

President Mahama Targets Billion-dollar Ghana–Singapore Trade in 24-Hour Economy Pitch to Investors

Unpaid Taxes “Very Frightening”, Says Hon. Nana Osei-Adjei

Trending

Energy

FEC 2025: NRGI Warns Fossil Fuel Investments Risk Undermining Africa’s Energy Transition; Lists Innovative Financing Instruments to Plug Transition Funding Shortfall

August 26, 2025

FEC 2025: NRGI Warns Fossil Fuel Investments Risk Undermining Africa’s Energy Transition; Lists Innovative Financing Instruments to...

Kwesi Appiah: The Ghanaian Legend Rewriting Sudan’s Football Story Amid War

August 26, 2025

Cadillac Signs Sergio Perez and Valtteri Bottas for 2026 F1 Debut

August 26, 2025

FEC 2025: Energy Minister Warns African Gov’ts Cannot Sustain Energy Financing Burden; Urges Stronger Private Sector Role in Continent’s Energy Financing

August 26, 2025

ACEP Pushes for Bold Financing Models to Tackle Africa’s Energy Poverty at FEC 2025

August 26, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.