Stockholm (NordSIP) – As the world population is expected to reach 9 billion by 2050, at over half of the total, Asia’s share will mean its population will be the same as that of the entire planet in 1990. At the same time, Asian GDP is expected to grow by 4.9% in 2024 and 2025, which would ensure it remains one of the engines of global economic growth.
From an ESG perspective however, the Asia-Pacific region Sustainable Development Goals investment financing gap of US$1.5 trillion per year according to the UN. While public funding has been the main source of support for development. However, according to the Global Impact Investing Network (GIIN) “today’s challenges, including climate change, poverty and healthcare costs, will demand more than just public capital to tackle them.” This creates an “opportunity for private capital to play a critical role.”
To address this issue, the GIIN has published a new ”Impact Investing in Asia in 2024” report. The report describes the landscape of assets, activity and financial performance across impact investors East Asia, Southeast Asia and South Asia. The GIIN has highlighted three main findings.
89% of Asia-focused impact investors reported their financial returns were outperforming or in line with expectations. Regarding the different views of the region, the GIIN report notes that 49% of global investors plan to increase their allocations to Southeast Asia in 2025. Asia-focused investors, however, indicated greater interest in East Asia, with 60% planning to increase their allocations there in the coming year.
