China is one country that is making the transition to focus on driving domestic consumption. The GDP growth of the world’s second-largest economy has slowed from over 10 percent in 2010 to around 7 percent this year, but personal consumption is projected to reach $6.5 trillion annually by 2020.
More countries can emulate that economic model, the consultancy added. Already, the GDP contribution of services has surpassed that of manufacturing in Indonesia, Malaysia, the Philippines and Thailand.
“The good news is that much of Asia is very well positioned to benefit from the digitalization of global business and the shift to services and domestic consumption,” BCG said in the report, adding that the region’s middle class — which is also among the world’s most digital-savvy — is a prime target for the services industry.
“The rising affluence of Asian households suggests that the region will continue to be the world’s biggest growth market for health care, education, financial services, entertainment and other services,” BCG said.