Is the Indian Ocean economy a new global growth pole?

Interesting paper by Ganeshan Wignaraja, Adam Collins and Pabasara Kannangara of Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI) in Colombo.

This paper examines whether the Indian Ocean economy–comprising 28 states across three continents–can become a growth pole for the global economy. It considers initial conditions, recent trade-led growth, portrays the near and medium context and various policy challenges. It finds that the strategically located Indian Ocean economy has become a pivotal global shipping hub. Its trade and Gross Domestic Product (GDP) have grown faster than the global
economy in recent years. Projections suggest that the Indian Ocean economy will likely account for over 20% of global GDP by 2025 and its GDP per capita is expected to almost double to USD 6150. However, realising this outlook will depend on tackling several pressing policy challenges including improving port quality and logistics, lowering barriers to trade and investment, narrowing development gaps and strengthening the regional economic governance.
Tackling these challenges requires a combination of coherent national and regional policy measures.

How the tides keep changing. It used to be Indian Ocean for a long time before Atlantic Ocean took over. Now back to Indian Ocean.


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