Entertainment and Tourism:  The Asia-Pacific region has seen a strong rebound in tourism following the COVID-19 pandemic. According to the Pacific Asia Travel Association (PATA), international visitor arrivals reached 647.9 million in 2024, representing a 91.9% recovery compared to 2019 levels. Under a medium-growth scenario, arrivals are projected to grow to 813.7 million by 2027. This recovery has been driven by improved connectivity through expanded airline routes and infrastructure upgrades, simplified visa processes such as China’s visa-free transit expansion and Thailand’s “Six Countries, One Destination” initiative, and digital transformation trends like mobile payments and social media-driven travel, which are fueling outbound travel from India and Southeast Asia. China is expected to reclaim its position as the leading inbound destination by 2027, with Japan, Türkiye, and Hong Kong SAR among the fastest-growing markets.

Globally, the travel and tourism sector contributed US$11.1 trillion to GDP in 2024, accounting for 10% of the global economy and supporting 348 million jobs worldwide—surpassing pre-pandemic employment levels. International visitor spending reached US$1.89 trillion, while domestic spending hit US$5.4 trillion, both near or above 2019 peaks. These figures underscore the sector’s resilience and its critical role in global economic recovery.

The Asia-Pacific media and entertainment market is also experiencing robust growth. It is projected to expand from US$1.34 trillion in 2025 to US$1.69 trillion by 2030, at a compound annual growth rate of 4.77%. Key drivers include the rise of OTT streaming platforms and localized content, the booming gaming and e-sports segment—which commanded over 21% of market share in 2024—and mobile-first consumption accelerated by widespread 5G rollouts. China remains the second-largest film market globally, with 2024 box office revenue reaching 42.5 billion yuan (approximately US$5.9 billion). While domestic films continue to dominate, foreign films regained market share, accounting for 21.3% of total earnings, the highest in five years.

Tourism and entertainment innovation is also evident in attractions like Columbia Pictures Aquaverse in Thailand. Opened in October 2022, this Hollywood-themed water park in Pattaya has become a major tourism draw, featuring rides and experiences based on Ghostbusters, Jumanji, and Hotel Transylvania. The park has earned international recognition, including the Theme Park of the Year award in 2025, and is expected to attract up to one million visitors annually as part of Thailand’s Eastern Economic Corridor development strategy.

Europe: Europe’s tourism sector has also fully recovered, recording 747 million international arrivals in 2024, which is slightly above 2019 levels. Overnight stays reached 2.99 billion, with Spain, Italy, France, and Germany accounting for over 60% of the EU tourism flow. Tourism supports more than 20 million jobs in Europe and contributes significantly to small and medium-sized enterprises. However, the cost-of-living crisis has shifted demand toward more affordable destinations such as the Balkans and Türkiye, while premium destinations like Spain and France face slower growth. Inflationary pressures persist, but spending is expected to grow by 10% in 2024, reaching €719.7 billion. Climate risks, including heatwaves, droughts, and flooding, are emerging threats to tourism infrastructure and seasonal patterns. Major companies such as TUI Group reported €23.2 billion in revenue in 2024, up 12% year-on-year, with strong demand for package holidays and cruises. Online travel giants Booking Holdings and Expedia continue to dominate, with Booking leading in European markets.

Asia: South Asia’s tourism recovery has been slower and more socially complex. The region lost nearly 50 million tourism jobs during the pandemic, and although employment rose by 6.2% in 2021 to 159.2 million jobs, it remains 13.8% below 2019 levels. Gender disparities persist, with women and youth disproportionately affected. Countries such as Thailand, Singapore, Indonesia, and the Philippines have seen strong rebounds since 2022, though volumes remain below pre-pandemic levels. Eco-tourism initiatives, such as the Philippines’ National Ecotourism Strategy, aim to attract millions of responsible travelers. Meanwhile, major booking platforms like Booking Holdings, Expedia, and HIS Co. Ltd report rising bookings in Asia-Pacific, with forecasts upgraded for 2025 due to strong demand despite economic uncertainty.

Overall, Asia-Pacific tourism is on track for full recovery by 2025, with strong growth projected through 2027. Global travel and tourism have become a US$11 trillion industry, surpassing pre-pandemic employment levels. Media and entertainment in Asia-Pacific is booming, with China retaining its global influence despite market fluctuations. Europe’s tourism sector has rebounded but faces inflationary pressures and climate risks, driving demand for budget-friendly destinations. South Asia’s recovery is slower, with a focus on inclusive growth and sustainability.

Europe: The Russian invasion of Ukraine in 2022 accelerated Europe’s transition away from Russian fossil fuels and toward renewable energy. By 2024, renewables accounted for 46.9% of EU electricity generation, up from 34% in 2019, while fossil fuels fell to a historic low of 29%. For the first time, wind and solar together surpassed fossil fuels, generating 30% of EU electricity in the first half of 2024 compared to 27% from coal and gas. Wind power grew by nearly 10%, and solar by 20%, supported by favorable conditions and capacity additions. Hydropower also rebounded after years of drought, helping renewables exceed half of the EU’s power mix.

Fossil fuel generation dropped sharply, with coal output falling by 24% and gas by 14%, driving a 17% overall decline in fossil-based electricity. This structural shift reduced EU power sector emissions to less than half their 2007 peak and cut reliance on imported gas, saving billions in energy costs. Electricity demand, which had slumped during the energy crisis, rebounded slightly by 0.7% in 2024 but remains below pre-crisis levels.

The European Green Deal continues to anchor this transition. It legally binds the EU to climate neutrality by 2050 and a 55% emissions reduction by 2030, supported by the European Climate Law. Financing comes from the NextGenerationEU Recovery Plan, REPowerEU, and the EU’s seven-year budget, with over €500 billion allocated for climate and energy projects. However, the European Commission estimates an annual investment need of €1.24 trillion—about 7.8% of EU GDP—to meet 2030 targets, leaving a significant funding gap. Legislative updates under the Green Deal include the Carbon Border Adjustment Mechanism (CBAM), an expanded Emissions Trading System, and the Net-Zero Industry Act, aimed at scaling clean tech manufacturing. Despite progress, watchdogs warn of delays and political pushback that could weaken climate ambition during the 2024–2029 term.

Asia: Energy demand in Southeast Asia is growing at one of the fastest rates globally, projected to rise 25% by 2035, driven by urbanization, industrialization, and population growth. Currently, fossil fuels dominate the region’s energy mix, accounting for around 80% of primary energy and 72% of power generation in 2024, with coal providing nearly half of electricity. Despite net-zero pledges by eight ASEAN countries—Brunei, Malaysia, Singapore, and Vietnam by 2050; Indonesia by 2060; and Thailand by 2065—progress is slow. Coal remains entrenched, and LNG imports, seen as a cleaner alternative, face cost and supply challenges, especially after Europe’s surge in LNG demand following the Ukraine war.



South Asia faces similar hurdles. Coal still supplies about 60% of power generation and plans to shift to LNG were disrupted by high prices and competition with Europe during the energy crisis. The region needs $367 billion in investment to stay on track for its 2050 decarbonization goals, but pandemic-related fiscal constraints and rising energy costs have slowed progress. While renewable energy capacity is expanding—solar and wind installations grew 30% between 2020 and 2024, clean energy investment remains far below required levels. ASEAN received only 2% of global clean energy investment in 2023, despite accounting for 9% of the global population.

Asia is investing in advanced technologies to accelerate its transition. Japan’s New Energy and Industrial Technology Development Organization (NEDO) and IHI Corp are leading projects under the Green Innovation Fund, including the development of ammonia-powered gas turbines and hydrogen infrastructure to support carbon-neutral aviation and power generation. Malaysia, through partnerships with IHI and Gentari, is building a green ammonia value chain aligned with its National Energy Transition Roadmap, aiming for large-scale hydrogen adoption by 2030.

Defense / Security

Europe: NATO remains a cornerstone of transatlantic security, originally formed in 1949 as a collective defense alliance against Soviet aggression. After the Cold War, NATO adapted to new missions, including counterterrorism and crisis management. Following the 9/11 attacks, NATO invoked Article 5 for the first time and deployed forces to Afghanistan. Today, NATO faces unprecedented challenges amid Russia’s full-scale invasion of Ukraine and growing global instability. At its 75th anniversary summit in Washington in July 2024, NATO welcomed Sweden as its newest member and reaffirmed its commitment to collective defense. Defense spending among the 32 allies surged by 18% in 2024, and NATO launched Steadfast Defender 24, its largest exercise in decades, to strengthen deterrence and readiness on its eastern flank.

Despite these efforts, NATO’s performance is under scrutiny. The alliance must balance urgent support for Ukraine with long-term modernization, while managing internal political divisions and addressing emerging threats from China and hybrid warfare. NATO has pledged continued assistance to Ukraine, including advanced air defense systems, long-range precision fires, and F-16 fighter jets, but production bottlenecks and political uncertainty in member states remain major obstacles.

Asian states increasingly look to the United States as a security partner amid rising tensions with China and North Korea. Japan has embarked on its most significant military expansion since World War II. Under its revised National Security Strategy (2022) and the Defense Buildup Program, Japan plans to double defense spending to 2% of GDP by 2027, aligning with NATO standards. The FY2025 defense budget is set at a record ¥8.7 trillion (US$58 billion), funding long-range strike capabilities such as Tomahawk missiles, satellite networks, and counterattack systems. This marks a strategic shift from a purely defensive posture to active deterrence against regional threats.

The U.S.-India defense partnership has also deepened. India, designated a “Major Defense Partner” since 2016, has signed foundational agreements enabling technology sharing and interoperability. U.S. arms sales to India now exceed $24 billion, including Apache helicopters, MH-60R Seahawks, and advanced surveillance systems. Joint initiatives like INDUS-X and the Critical and Emerging Technology (iCET) framework aim to co-develop next-generation military technologies, while bilateral exercises such as Tiger Triumph 2025 underscore growing operational integration.

Russia’s invasion of Ukraine forced the EU to rethink its dependence on Russian energy and critical raw materials. Under the REPowerEU plan, the EU cut Russian gas imports from 45% in 2021 to 19% in 2024, banned coal entirely, and reduced oil imports to 3%. However, Russian LNG imports rose by 18% in 2024, highlighting persistent vulnerabilities. The EU roadmap now targets a full phase-out of Russian oil, gas, and nuclear fuel by 2027, alongside diversification through trade agreements with Chile, Mexico, New Zealand, Australia, and India. The EU-Chile Interim Trade Agreement, which entered into force in February 2025, includes provisions for critical raw materials and green hydrogen cooperation, reinforcing Europe’s supply chain resilience.

To support Ukraine militarily, the EU mobilized €11.1 billion under the European Peace Facility and delivered over 1 million artillery shells in 2024, though production delays remain a concern. Plans for 2025 include supplying up to 2 million rounds and channeling revenues from frozen Russian assets into Ukraine’s defense.

Asia: South and Southeast Asia are modernizing their armed forces amid rising geopolitical tensions. Defense spending in ASEAN has grown steadily, with countries like Indonesia, Vietnam, and the Philippines investing in advanced naval and air platforms. The Philippines, for example, is shifting from counterinsurgency to maritime defense in the South China Sea, conducting joint drills with the U.S., Japan, and allies under Sama Sama 2025. Washington recently deployed MQ-9 Reaper drones and established a U.S.-Philippines joint task force to enhance maritime domain awareness and deterrence against Chinese coercion.

Global defense firms are also repositioning. Lockheed Martin and BAE Systems have relocated their Asian headquarters to Japan, reflecting Tokyo’s growing role as a defense hub. These moves align with Japan’s participation in the Global Combat Air Programme (GCAP) with the U.K. and Italy to develop a next-generation fighter jet by 2035, and with expanded U.S.-Japan industrial cooperation on missile defense and electronic warfare systems.

Financials / Investments

Europe:

Europe’s economy has stabilized after the energy shock triggered by Russia’s invasion of Ukraine. Inflation fell to 2.5% in 2024, down from double-digit highs in 2022, while GDP growth remained subdued at 0.8% for 2024, with projections of 1.3% in 2025. The European Central Bank (ECB) began cutting interest rates in mid-2024 after a period of aggressive hikes, lowering the deposit rate from 4.00% to 3.00% by December 2024, and signaling further easing in 2025 as inflation trends toward its 2% target. However, tight lending conditions and weak private consumption continue to weigh on growth, raising concerns about prolonged stagnation despite falling energy prices and improved supply chains.

Asia:

Geopolitical tensions and regulatory uncertainty in China have accelerated a pivot toward Asia ex-China markets. Emerging Asia excluding China delivered 8.6% returns in 2023, compared to just 1.3% for China, according to MSCI indices. Foreign investors poured $38 billion into Asia ex-China stocks and bonds in 2023, with $22.4 billion in May alone, marking the largest monthly inflow since 2011. India has emerged as the region’s growth engine, driven by its booming technology sector. In 2024, India attracted $13.7 billion in venture capital funding, a 43% increase year-on-year, making it Asia-Pacific’s second-largest VC destination after China. Tech-first sectors—consumer tech, SaaS, and fintech—accounted for over 60% of total funding, with major deals in quick commerce, AI, and electric mobility. Global energy giants like Shell Ventures and BP Ventures are investing heavily in India’s clean-tech startups, reflecting confidence in its transition toward sustainable growth.

Foreign investment in China has sharply declined in recent years. After peaking at $344 billion in 2021, inbound foreign direct investment (FDI) fell to $114.8 billion in 2024, marking a 27% drop year-on-year and the lowest level in decades. This downturn reflects growing investor concerns over China’s restrictive business environment, regulatory unpredictability, and heightened state control over private enterprises. Beijing has attempted to reverse the trend by pledging further market opening and easing some rules, but foreign firms remain cautious due to capital controls, data security laws, and political risks. While China’s economy grew 5.3% in the first quarter of 2024, structural challenges such as property sector stress and weak consumer demand persist, adding to investor uncertainty.

China’s Belt and Road Initiative (BRI), launched in 2013, continues to evolve. Initially criticized for creating “debt traps,” the BRI is now shifting toward smaller, greener, and less risky projects, emphasizing high-quality investment, project finance, and green energy initiatives. However, debt sustainability concerns remain acute: in 2025, 75 developing countries faced $22 billion in BRI-related repayments, raising fears of economic strain and sovereignty risks. Italy, the only G7 country to join the BRI in 2019, formally withdrew in December 2023, citing limited economic benefits and strategic realignment with the EU and the United States. Meanwhile, the U.S. and G7 partners are advancing the Partnership for Global Infrastructure and Investment (PGII) as a counterweight to BRI. PGII aims to mobilize $600 billion by 2027, with the U.S. committing over $60 billion to date and focusing on strategic corridors linking India, the Middle East, and Europe.

Healthcare/

Pharmaceutical

The COVID-19 pandemic exposed significant vulnerabilities in healthcare systems worldwide, including those in Europe and Asia. Both regions have since accelerated reforms aimed at strengthening resilience, expanding coverage, and modernizing infrastructure to better prepare for future health crises.



In Europe, most countries maintain universal healthcare systems, either fully tax-funded or through social insurance models. Nations such as Sweden, Finland, Norway, and Iceland provide comprehensive free healthcare, while others like Austria, France, and Germany operate two-tier systems combining public coverage with optional private insurance. Recent reforms across Europe focus on reducing barriers to access, improving affordability, and adapting to demographic shifts, particularly aging populations and the rising prevalence of chronic diseases.

The European pharmaceutical market is a major economic driver. In 2024, its value reached approximately $467.6 billion, with projections to grow to $820 billion by 2034 at a compound annual growth rate of 5.8%. Growth is fueled by innovations in biologics, gene therapies, and digital health solutions. Leading firms such as Bayer, Boehringer Ingelheim, Novartis, Sanofi, and AstraZeneca dominate therapeutic areas including oncology, immunology, and rare diseases. Employment in the sector exceeds 900,000 jobs, supported by strong R&D investment and regulatory frameworks like the European Medicines Agency’s streamlined approval processes.

Healthcare access in Asia varies widely. Countries such as Japan mandate health insurance for all citizens, while India provides free care primarily for those below the poverty line. India’s flagship Ayushman Bharat scheme now covers over 550 million people, offering cashless hospitalization benefits up to ₹5 lakh per family annually. Digital health initiatives like the Ayushman Bharat Health Account (ABHA) have linked over 460 million health records, signaling progress toward integrated care. However, out-of-pocket spending remains high in many Asian nations, and universal coverage reforms are still underway. China has achieved near-universal medical insurance coverage, reaching 95% of its population, but public plans often provide limited reimbursement, driving demand for supplemental private insurance. Recent reforms in China focus on reducing costs through bulk drug procurement and expanding digital health services, including telemedicine and one-stop hospital platforms.

Asia is rapidly modernizing its healthcare infrastructure through digital transformation. Electronic Medical Records (EMRs) are central to this shift, with Japan, Singapore, and Indonesia leading adoption. Indonesia reports 96% EMR implementation in hospitals, while Japan is accelerating interoperability through its Medical Digital Transformation Plan, promoting cloud-based EMRs and AI-driven care. Across the Asia-Pacific, EMR adoption is expected to exceed 90% in private hospitals by 2025, improving efficiency and patient safety.

The pharmaceutical industry in Asia is also booming. China’s pharmaceutical market reached $252 billion in 2024, making it the world’s second largest. Growth is driven by R&D investment, regulatory reforms, and innovation in biologics and biosimilars. The sector is projected to expand at a 10% CAGR, reaching $540 billion by 2032. India’s pharma industry is thriving as well, supported by global partnerships and a strong generics market, while Southeast Asia sees rising investment in local manufacturing and digital health integration.

Manufacturing

Manufacturing in the Western world has faced structural challenges for decades, and the trend continues. Europe’s manufacturing sector remains under pressure, with industrial production in the EU falling by 2% in 2024, following a 1.4% decline in 2023. Germany and France—the region’s industrial engines—have seen persistent contractions, driven by high energy costs, weak global demand, and competition from Asia. Germany’s manufacturing output dropped 10 percentage points below pre-pandemic levels by late 2024, while France managed modest growth in pharmaceuticals and food production but still faces headwinds in automotive and machinery sectors. Rising input costs and supply chain disruptions linked to the Russia-Ukraine war have compounded these challenges, forcing European firms to rethink energy sourcing and invest in automation and green technologies to remain competitive.

Despite short-term rebounds—such as a 0.1% year-on-year increase in euro area industrial production in August 2024- the overall trend points to stagnation, with capital goods output falling by 7.5% in 2024 and motor vehicle production down 6.4%. Analysts warn that without significant investment in advanced manufacturing and clean energy infrastructure, Europe risks further deindustrialization.

In contrast, the Asia-Pacific continues to dominate global manufacturing. The region is projected to lead the smart manufacturing market, growing from $277.8 billion in 2022 to $754.1 billion by 2030, at a compound annual growth rate of 15.7%. China remains the world’s largest manufacturing economy, but its strategy has shifted from low-cost production to high-tech leadership under the Made in China 2025 initiative. This program, now in its second phase, emphasizes AI-driven automation, green energy integration, and advanced robotics, with over 80% of large Chinese manufacturers using AI-based systems to boost efficiency and reduce waste. Smart factory models like Haier’s COSMOPlat and Huawei’s FusionPlant exemplify this transformation, delivering 25% productivity gains and 30% waste reduction through AI and IoT integration.

India is emerging as a major manufacturing hub, supported by the Make in India initiative and Production-Linked Incentive (PLI) schemes targeting electronics, automotive, and semiconductors. Manufacturing accounts for 17.2% of India’s GDP, with government targets to raise this to 25% by 2030. Venture capital and foreign direct investment are flowing into India’s industrial sector, driven by supply chain diversification and cost advantages. Vietnam is also gaining traction, with its industrial production index surging 8.4% in 2024, the highest in four years, fueled by electronics, automotive, and textile exports.

The adoption of Industry 4.0 technologies—including AI, IoT, and robotics—is accelerating across Asia-Pacific. Predictive maintenance, autonomous systems, and digital twins are becoming standard in Chinese and Japanese factories, while Southeast Asian nations invest in cloud-based platforms and cybersecurity for smart manufacturing. These advancements are reshaping global supply chains, enabling mass customization and reducing reliance on low-cost labor.



Globalization has driven manufacturing shifts, but recent disruptions—including the COVID-19 pandemic, the Russia-Ukraine war, and the U.S.-China trade conflict—have exposed vulnerabilities. The trade war pushed global supply chains to a breaking point, with tariffs as high as 145% on Chinese goods by 2025, prompting multinationals to diversify production to Southeast Asia and Mexico. Supply chain resilience is now a strategic priority, with companies investing in nearshoring, digital risk management, and AI-driven logistics to mitigate geopolitical and climate risks.

Property prices around the European Union have resumed growth after a period of correction. According to Eurostat, house prices in the EU rose by 5.4% year-on-year in the second quarter of 2025, following modest gains in 2024 after two quarters of decline in 2023. This recovery has been supported by easing inflation and interest rate cuts by the European Central Bank and the Bank of England in mid-2024, which improved financing conditions for buyers and investors. Despite these positive signs, the market remains cautious due to lingering geopolitical risks and structural supply shortages in major cities.

London continues to rank among Europe’s top investment destinations, driven by regeneration projects and strong rental demand. Prime areas such as Battersea, King’s Cross, and Paddington are attracting global investors, with projected price growth of up to 13.9% over the next five years and rental yields averaging between 8.5% and 9.2% annually for buy-to-let properties. Germany remains Europe’s largest commercial real estate market, valued at nearly $2 trillion in 2024, despite price declines of 7.4% year-on-year in the second quarter of 2024 due to high financing costs and economic uncertainty. Analysts expect stabilization as interest rates fall and ESG-driven retrofits boost demand for sustainable assets.

The European commercial real estate market overall was estimated at $1.42 trillion in 2024, with projections to reach $2.42 trillion by 2032, driven by logistics, data centers, and green-certified properties. Residential markets face structural undersupply, particularly in urban hubs, which continues to support price resilience despite macroeconomic headwinds.

Asia-Pacific real estate markets present a mixed picture. India has emerged as a global growth leader, with its real estate sector valued at $482 billion in 2024 and projected to reach $1.18 trillion by 2033, growing at a compound annual growth rate of 10.5%. India’s rise is fueled by urbanization, infrastructure development, and strong demand for residential and commercial spaces. Institutional investments surged in 2025, supported by regulatory reforms and the country’s improved ranking in JLL’s Global Real Estate Transparency Index, moving to the “transparent” tier for the first time.

China, once the engine of global property growth, continues to grapple with a prolonged housing crisis. New home prices fell by 0.22% in May 2025, and real estate investment dropped 12% year-on-year, despite government stimulus measures including record-low down payment requirements and tax incentives. While policy support has stabilized sentiment, oversupply and weak demand remain structural challenges, with analysts warning that recovery will be slow and uneven.

Singapore has shown resilience, with private home prices rising 3.9% in 2024, supported by a strong fourth-quarter recovery and easing inflation. HDB resale prices climbed 9.6%, reflecting sustained demand for public housing amid affordability concerns in the private market. The Singapore real estate market is projected to grow from $53.6 billion in 2025 to $67.2 billion by 2030, at a 4.6% CAGR, driven by logistics, data centers, and luxury housing.

High inflation and supply chain disruptions have significantly impacted construction costs worldwide. In 2024, global construction costs rose by 5–7%, driven by surging material prices such as steel, cement, and lumber, labor shortages, and energy volatility. Cities like New York and Zurich remain the most expensive for construction, with costs exceeding $5,000 per square meter, while London re-entered the global top ten at $4,473 per square meter. Developers are increasingly adopting prefabrication, modular construction, and green building practices to mitigate cost pressures and meet sustainability targets.

The retail industry in Europe was one of the highest and most important industries, accounting for 11.5% of EU value added and employing nearly 30 million people. After severe disruptions caused by COVID-19 and the Russia-Ukraine war, the sector has shown signs of recovery. Retail sales in the EU grew by 1.0% year-on-year in August 2024, with non-food products up 1.7%, although foot traffic in physical stores remains below pre-pandemic levels. Overall, the European retail market expanded by around 5% in 2024, led by retail parks and experiential shopping centers, while vacancy rates declined across most asset types, signaling resilience despite inflationary pressures.

E-commerce continues to reshape the retail landscape. Online sales accounted for 16% of total retail sales in Europe in 2024 and are projected to reach 21% by 2029, with annual growth of 7.8% across major markets such as the UK, Germany, and France. The UK leads in online penetration, where e-commerce represents 27% of retail sales, expected to rise to 32% by 2029. Germany and France follow with shares of 16% and 14%, respectively, highlighting the structural shift toward digital channels. The EU’s Single Market Strategy 2025 aims to reduce regulatory barriers, harmonize digital labeling, and tackle territorial supply constraints to strengthen competitiveness and support SMEs in adapting to omnichannel retail models.

Asia-Pacific remains the global growth engine for retail. The region accounted for 37% of global retail sales in 2023, projected to rise to 40% by 2028, driven by rapid urbanization, a growing middle class, and rising disposable incomes. Retail spending in APAC grew 5% in real terms in 2024, outpacing Europe and North America, with India, Indonesia, and Vietnam leading gains. India’s retail sector is booming, supported by strong consumer demand and tourism-driven street markets, while Indonesia and South Korea posted retail sales growth between 4% and 14% in 2024.

E-commerce adoption is accelerating across Asia. The Asia-Pacific e-commerce market was valued at $2.9 trillion in 2024 and is forecast to reach $9.67 trillion by 2034, growing at a 12.8% CAGR. Southeast Asia alone is projected to hit $230 billion in GMV by 2026, with Indonesia leading at $82 billion in 2023. Platforms like Alibaba, Shopee, and TikTok Shop dominate online retail, while cross-border e-commerce is surging, supported by digital wallets and bonded logistics networks. China’s retail sector, however, faces headwinds: retail sales grew only 2.9% year-on-year in October 2025, marking its slowest pace in over a year, as consumer confidence remains subdued despite stimulus measures.

Inflation and rising costs continue to impact retail and construction globally. In Europe, consumer prices stabilized at 2.6% in 2024, but high interest rates and energy costs have constrained household spending and retail investment. Construction costs remain elevated, with global building costs increasing 5–7% in 2024, driven by material price volatility and labor shortages. Retailers are responding by adopting omnichannel strategies, integrating physical and digital experiences, and leveraging AI-driven personalization to enhance customer engagement.

Europe’s technology sector has grown into a global powerhouse over the past decade. The ecosystem’s value surged from $560 billion in 2015 to $3.2 trillion in 2024, driven by strong venture capital flows, talent expansion, and innovation in fintech, AI, and climate tech. Venture capital investment in European startups reached $52 billion in 2024, stabilizing after pandemic-era volatility and positioning Europe as a leading hub for early-stage funding. Cities like London, Berlin, and Paris remain top destinations for tech investment, supported by robust infrastructure and policy initiatives under the EU’s Digital Strategy.

Europe now hosts over 200 unicorns, up from just 72 in 2015, with fintech, AI, and enterprise software dominating the landscape. Notable companies include Klarna, Revolut, Spotify, Personio, and Doctolib, alongside emerging players in generative AI and green tech. AI startups attracted $13.7 billion in funding in 2024, accounting for nearly 15% of Europe’s tech sector value, while climate tech captured 21% of total investment—double the U.S. share. Despite this progress, Europe faces a $375 billion growth-stage funding gap compared to the U.S., underscoring the need for deeper institutional capital and scaling support.

Asia-Pacific remains the fastest-growing technology market globally. Tech spending in the region is projected to grow at 6.4–7.4% annually, reaching $876 billion by 2027, with software and AI-driven services leading the charge. In 2024 alone, China’s tech expenditure hit $261.9 billion, while India grew by 10.8% to $54.5 billion, fueled by government-led digitization and cloud adoption. Southeast Asia recorded $74 billion in tech spending, supported by favorable policies and investments from global tech giants.

5G adoption is accelerating across Asia. South Korea remains a leader, but China and India have made significant strides, with China achieving 77% 5G standalone coverage and India 51% by 2024. By 2030, 5G is expected to account for 41% of mobile connections in Asia-Pacific, adding $133 billion to regional GDP, particularly in smart cities and manufacturing.

Asian tech companies are gaining global traction. Haegin, a South Korean gaming firm, surpassed 200 million downloads for its flagship game Play Together and expanded into PC gaming in 2025, ranking among Asia-Pacific’s fastest-growing IT firms. FreeD Group, headquartered in Hong Kong, is pioneering digital commerce solutions and was named a World Economic Forum Technology Pioneer, while Rohm continues to lead in semiconductor innovation with breakthroughs in SiC MOSFET technology for EVs and industrial applications.

China is doubling down on AI and advanced technologies to secure global leadership. AI investment is projected to reach $98 billion in 2025, up 48% from 2024, with government funding accounting for more than half of this total. Major tech firms like Alibaba and Tencent are ramping up AI infrastructure spending, while generative AI startups such as Zhipu AI and Baichuan AI are closing the gap with Western models. Despite U.S. export controls, China has built hundreds of AI data centers, though many remain underutilized due to speculative overinvestment and shifting market dynamics.

Artificial intelligence is transforming industries worldwide, but it also raises concerns about job displacement. The World Economic Forum estimates that 85 million jobs could be displaced globally by AI and automation by 2025, while creating 97 million new roles in areas like cybersecurity, digital marketing, and software development. Recent reports highlight structural unemployment risks, with mid-skilled roles in administration, customer service, and logistics most vulnerable. Policymakers are exploring measures such as an “AI tax” to fund reskilling programs and mitigate social inequality.

The internet has permanently transformed global communication, enabling real-time connectivity across borders and revolutionizing how individuals, businesses, and governments interact. Today, more than 86% of the world’s population owns a smartphone, making mobile devices the primary gateway to digital services, financial inclusion, and social connectivity. Smartphones have evolved beyond simple communication tools into platforms for commerce, education, and healthcare, particularly in emerging markets where traditional infrastructure is limited.

5G represents the latest leap in wireless technology, offering ultra-fast speeds, low latency, and massive device connectivity. Global adoption has accelerated at an unprecedented pace, reaching 2.25 billion connections by the end of 2024—four times faster than 4G LTE at a comparable stage. By 2029, 5G subscriptions are projected to hit 8.3 billion, representing nearly 60% of all mobile connections worldwide. North America leads in coverage, with 77% of its population under 5G networks, while Europe and Asia-Pacific are rapidly expanding deployments. China is aggressively scaling its 5G infrastructure, with 3.8 million base stations deployed by mid-2024, accounting for 60% of global 5G sites. The country has also launched 5G-Advanced networks in over 300 cities, delivering speeds up to 10 times faster than standard 5G and enabling advanced applications such as autonomous driving, drone logistics, and immersive XR experiences. India is another major growth market, expected to surpass 394 million 5G subscriptions by 2025 and reach 1 billion by 2031, driven by affordable devices and high data consumption.

The global telecom industry remains highly concentrated, operating largely as an oligopoly due to high infrastructure costs and spectrum licensing barriers. Top players by market capitalization include China Mobile ($246 billion), T-Mobile US ($236 billion), AT&T ($184 billion), Verizon ($174 billion), and Deutsche Telekom ($158 billion), alongside major Asian firms like SoftBank, Bharti Airtel, and NTT. While competition exists, market dynamics often favor a few dominant operators, leading to price rigidity and limited consumer choice in many regions.

Emerging trends are reshaping the industry. The rise of private 5G networks for industrial automation, logistics, and smart cities is creating new revenue streams for telecom operators, though monetization remains a challenge. Meanwhile, geopolitical tensions and digital sovereignty concerns are driving countries like China and Russia to build parallel internet ecosystems to reduce reliance on Western platforms.

Europe: Utilities such as electricity, heating, and water remain essential to the quality of life across Europe. Most EU citizens enjoy near-universal access to these services, supported by strong regulatory frameworks and infrastructure. Under EU law, households have the right to be connected to electricity networks, and vulnerable consumers cannot be disconnected even if they cannot pay their bills. However, rising energy prices during the recent energy crisis exposed affordability challenges, with monthly utility costs ranging from €115 in Helsinki to €370 in Munich, making Germany and the UK among the most expensive regions for basic utilities.

To strengthen resilience and sustainability, the EU is investing heavily in modernizing utility infrastructure. Programs under the European Green Deal and REPowerEU allocate billions toward electrification, renewable integration, and smart metering. By 2024, over 80% of EU households had smart electricity meters, enabling dynamic tariffs and energy savings of up to 10% per household. These initiatives aim to reduce energy poverty, improve efficiency, and support the transition to carbon neutrality by 2050.

In Asia, access to utilities varies widely. Advanced economies like Singapore and South Korea rank among the world’s leaders in infrastructure quality, while emerging economies such as India and Vietnam face significant gaps in water, sanitation, and energy services. India has made major strides through the Jal Jeevan Mission, which increased rural tap water coverage from 32 million households in 2019 to nearly 140 million by late 2023, aiming for universal access by 2024. Similarly, the Swachh Bharat Mission has improved sanitation dramatically, reducing open defecation rates from 60% to under 20% since 2014.

Despite progress, challenges remain: 35 million Indians still lack access to safe water, and 678 million lack safe toilets, underscoring the need for sustained investment and institutional capacity building. Vietnam and other ASEAN nations are also scaling up infrastructure spending, with ASEAN’s energy demand projected to rise 70% by 2040, driving investments in power grids, water systems, and renewable energy projects.

China’s rapid urbanization and expanding middle class—now over 400 million people—have significantly improved access to utilities. Urban households enjoy near-universal electricity and piped water coverage, while rural areas have seen major upgrades under government programs targeting poverty alleviation and infrastructure modernization. However, regional disparities persist, and Beijing’s latest five-year plan emphasizes investment in water security, clean energy, and digital utility networks to support sustainable growth and meet rising consumption demands.

Globally, utility infrastructure is a major investment priority. In 2024, $2.4 trillion was invested in energy transition, with $807 billion directed toward renewable power, including solar, wind, and grid modernization. While advanced economies and China dominate these flows, emerging markets face financing gaps due to high capital costs and limited fiscal capacity. International agencies and multilateral banks are calling for risk-mitigation tools and blended finance to accelerate inclusive access to clean and affordable utilities worldwide.