Southeast Asian economies struggle to keep up with region’s surging population

Real GDP per capita grew by 2.9% in 2023, slower than the 3.8% recorded in 2016. This “suggests the need to speed up GDP growth to be faster than the current pace of population growth,” the report noted.

The same trend was observed in real GDP per employed person, which slowed to 1.6% from 3.0% in the same period, indicating weaker productivity.

“It could indicate the needs of technological advancement, better capacity building and improved management practices in the economy for obtaining higher productivity so that it will drive higher economic growth,” the report stated.

Based on separate ASEAN data, the region’s population stood at 671.7 million in 2022, representing a 1.2% growth rate, faster than the 0.8% recorded the previous year.

These indicators reflect Asean’s progress under SDG 8, or Decent Work and Economic Growth, which seeks to promote inclusive growth, full employment and decent work for all.

Far from full employment

Under the same SDG, the report noted that the region remains far from full employment. The unemployment rate inched down only slightly, to 3.8% from 3.9% in 2016, which the report described as “relatively slow” progress.

Disparities remain between sexes and age groups. Unemployment among men was 3.7% in 2023, compared with 4.0% in 2016, while women’s unemployment rose to 3.5% from 2.6%.

Youth unemployment was the highest, standing at 8.5% in 2023, though down from 11.2% in 2016. The share of young people not engaged in education, employment or training also fell to 16.8% from 18.7%.

Southeast Asia remains a relatively young region, with a median age of 30.4, compared with the Asian average of 32.5 years. 

The figure is expected to fall further when Timor-Leste, Asia’s youngest democracy, which also happens to have one of the world’s youngest populations, formally joins the bloc.