Income and Expenditure in Asia Pacific

Delivery

This report comes in PPT.

Key Findings

Disposable income grows at the fastest pace among the world’s regions

Total disposable income is set to more than double in real terms over 2021-2040, faster than in any other region, but will remain among the lowest globally. Fast economic development, ongoing urbanisation, and growing digital adoption are expected to be among the major growth drivers.

Lowest-income consumer group is set to rise at the fastest pace

Income inequality remains a pressing issue in Asia Pacific, with social support systems in many regional governments being ineffective in reducing inequality through taxes and government expenditure. The global economic recession, disruptions in supply chains and rising prices are set to hinder further growth of the middle class in Asia Pacific, adding to the expansion of lowest-income groups (social classes D and E).

Gender income gap is projected to expand

Despite extensive female empowerment efforts in many regional countries, the gender income gap is expected to increase over 2021-2040. Male-dominated industries, such as construction and manufacturing are growing rapidly in Asia Pacific, leading to higher income gains for men, while sectors dominated by women are struggling from negative COVID-19 effects.

Expenditure on transport and hospitality to witness the fastest growth

Due to rapid development of infrastructure, leading to better regional integration and unlocking more opportunities to work and travel, consumer expenditure on transport is growing at the fastest pace among all expenditure categories in Asia Pacific. Improving connectivity is also set to spur travel across the region, driving expenditure on hotels, while intensifying urbanisation and busier consumer lifestyles are expected to boost spending on catering.