The global economic recovery from the COVID-19 pandemic is expected to hasten a shift that positions Asia at the center of the world economy, according to a report by ANZ and Eurasia Group. The report, titled 'Asia’s economy: taking centre stage,' is the first in a series examining the impact of COVID-19 in what is described as a G-Zero world—a geopolitical environment lacking clear leadership due to waning Western influence.
Key findings of the report indicate that geopolitical tensions between the United States and China will complicate business environments for countries trying to maintain balanced relations with both powers. Additionally, the economic fallout from COVID-19 has accelerated the decline of U.S. economic dominance while increasing Asia's—particularly China's—role in the global economy.
Eurasia Group & GZERO Media President Ian Bremmer commented on these shifts: “The fragile geopolitical backdrop in this G-Zero world will result in a longer and deeper coronavirus crisis than any of us would like to see. The pandemic has further weakened US global leadership and economic influence."
ANZ Chief Economist Richard Yetsenga noted Asia's resilience during the pandemic, stating: “Asia’s resilience to the pandemic has allowed many countries to emerge from the crisis with a more central role in the world economy." He highlighted China's potential leadership in global demand recovery and pointed out that ASEAN countries have surpassed the U.S. as China's largest export customers.
Farhan Faruqui, ANZ Group Executive International, remarked on changes brought by the pandemic: “The pandemic has changed the way we live and work forever... Digitisation, data, robotics, automation, and cloud investment will be more critical considerations for business than they have been before.”