Delhi will grow the fastest in Asia by 2021
View of Delhi from Jama Masjid, India
Delhi’s growth will outpace that of other cities in Asia in the next few years, Oxford Economics reported in a new study.
India’s capital ranked first in the advisory firm’s ranking of prospective economic growth rates in Asia’s 30 largest cities. Propelled by a bullish financial and business services sector, Delhi’s economy is projected to balloon by 50 percent in 2021 from the end of last year.
Five other Indian cities, in fact, powered to the top 10 of the ranking: Chennai, Mumbai, Hyderabad, Kolkata and Bangalore, taking third to seventh places, respectively.
“Limits on foreign ownership of Indian companies are gradually being reduced or eliminated,” wrote Mark Britton, lead economist on the study, per Bloomberg. “In the short term this is conducive to strong growth in Delhi’s professional services sector, as overseas investors seek advice on possible deals, while long term it should mean steady income streams for such businesses.”
Finishing second place to Delhi, Ho Chi Minh City is expected to grow in prominence as a manufacturing destination with a potent services sector.
Two mainland Chinese cities placed in the top 10: Tianjin, at eighth place, also due to its large manufacturing base. Expansion will, however, decelerate in China, Oxford researchers noted, adding that slowing import demand from the mainland will weigh down on regional growth rates, projected to average 4.2 percent per annum until 2021.
For perspective, the region demonstrated an annual growth of 4.5 percent during the period 2012-2016.
Manila will be the ninth fastest-growing city in the region by 2021, above Beijing, at 10th. Other Southeast Asian cities on the list are Jakarta (14th place), Kuala Lumpur (15th), Singapore (17th), and Bangkok (18th).
Osaka fell last in the ranking, followed by three other Japanese cities: Nagoya, Tokyo and Yokohama. The dwindling working-age populace will continue to beset Osaka, falling by around 1 percent per annum.
This article originally appeared on Property Report.
