| Economy | Real GDP growth (% change on previous year) | Real GDP growth per capita (% change on previous year) | Consumer price inflation (%) |
|---|---|---|---|
| Canada | 3.4 | 1.2 | 6.8 |
| Vietnam | 8.0 | 7.1 | 3.2 |
| Indonesia | 5.3 | 4.3 | 4.2 |
| Philippines | 7.6 | 6.1 | 5.8 |
| Malaysia | 8.7 | 7.3 | 3.4 |
Economists broadly agree on the supply-side drivers of economic growth, such as capital accumulation, technological innovation, and human capital development. However, the wider international consequences of this growth remain a subject of debate. Central to this live discussion is how growth in one region shifts the living standards of major trading partners. While GDP per capita remains a foundational metric for comparing material welfare, modern evaluations increasingly utilize more multi-dimensional welfare indexes.
Optimists argue that sustained economic expansion in emerging economies fuels global consumption possibilities, improves public finances, and provides resources to tackle shared challenges like healthcare and climate transition infrastructure.
Conversely, critics point out that rapid industrialization is heavily tied to resource depletion, heightened environmental hazards, and rising global carbon emissions. Despite these concerns, non-material quality-of-life indexes highlight that emerging economies are gradually climbing in international rankings.
Southeast Asia is currently undergoing a structural transformation. Countries like Vietnam have transitioned into vital high-tech manufacturing nodes, Malaysia has expanded its advanced electronics and services sectors, and Indonesia is leveraging its massive mineral deposits to move up the global value chain. The region's expanding middle class makes it a high-potential export destination. Trade frameworks, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), have deepened these absolute economic links.
As a consequence of these developments, living standards within Southeast Asia are set to rise. Furthermore, the living standards of advanced economies, including Canada, will be affected by economic growth in Southeast Asia. This growth will open up new consumer markets for high-value services and agri-food exports, unlock investment channels, and secure supply chains for critical minerals.
However, this transformation also introduces challenges. If advanced economies fail to adapt, they could face stiff competition in manufacturing, green technologies, and high-skilled services. Determining the net impact on Canadian living standards requires careful consideration of structural economic shifts.
Extract B argues that 'the living standards of developed countries, including Canada, will be affected by economic growth in Southeast Asia'.
Using the data and your economic knowledge, assess the view that living standards in Canada are likely to benefit from sustained economic growth in the economies of Southeast Asia.
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.