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PwC’s Asia desk lead partner has warned that Australia will lose its place as a G20 economy if we continue to ignore the increasing economic success of Asian nations.
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Australia's place in G20 at risk, warns PwC
16 February 2015
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Andrew Parker's comments follow the release of the PwC report World in 2050 which projects China and India as world leaders in 2050, with the United States in third place, Indonesia in fourth, and with Australia kicked out of the G20 in the 28th spot based on GDP at 2014 Purchasing Power Parity terms.
"It is now clear that the global economic power shift away from the established advanced economies in North America, Western Europe and Japan will continue over the next 35 years," Mr Parker said.
"Global trade and supply chains are being redefined as a result of this shift, while being accelerated by technology and a glut of bilateral and multilateral trade deals.
"Australia has sealed trade deals with China, Korea and Japan – we now need companies to step up and take advantage of them."
According to Mr Parker, just $28.2 billion of Australia's foreign direct investment stocks are directed to ASEAN countries, whereas $45.9 billion is directed towards New Zealand.
"Businesses must immerse themselves in Asia, and build better relationships, networks and supply chains and we must invest in Asia, not simply trade with Asia, if we are to fully benefit from the region's economic growth," said Mr Parker.
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"Big companies originating from countries within Asia are operating across Asia and going global, and they are coming to our markets.
"We are seeing new alliances formed in response to these multilateral agreements and Australian companies are not part of them," Mr Parker said.
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