15 Most Powerful Asian Countries in 2024
In this article, we look at the 15 most powerful Asian countries in 2024. You can skip our detailed analysis on the economic potential and race for power in the world’s largest continent by heading over to the 5 Most Powerful Asian Countries in 2024.
Asia’s Corporate Power
Western observers have been talking about Asia’s future potential for quite some time, and that future is catching up faster than expected. According to a report by McKinsey & Company, Asia, which in the year 2000 accounted for less than one-third of the world’s GDP in purchasing power parity terms, is poised to make up more than 50% of the global economy by 2040. In addition to this, Asia will also account for about 40% of the world’s consumption by then.
PricewaterhouseCoopers has forecast that China alone would constitute 20% of the world’s GDP by 2050, while India will surpass the United States to become the second largest economy in the world, with Indonesia being fourth biggest economic power. All of these projections reiterate what many experts have long been saying, that this is going to be Asia’s century.
Over the last decade or so, several large corporations including Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) have outsourced some of their operations to Asian countries, for reasons ranging from cheap skillful labor to the lucrative opportunities offered by the huge market size in the continent.
Today, 95% of Apple Inc. (NASDAQ:AAPL)’s iPhone, iPads, and MacBooks are made in China – the country which also happened to be the source of 20% of the company’s overall revenue in 2022. Apple Inc. (NASDAQ:AAPL) is also making inroads in the Indian market. Its first retail store in the country was inaugurated last year in Mumbai.
There has been an uptick in Microsoft Corporation (NASDAQ:MSFT)’s investments in Asia as well. In 2021, the company announced to set up a new data center in Indonesia, which is expected to increase revenues for the tech giant by $6.3 billion. Moreover, the International Data Corporation (IDC) has noted that Microsoft Corporation (NASDAQ:MSFT) is likely to add to $39 billion and create 100,000 new jobs in the UAE’s economy between 2022 and 2026 through its cloud based services.
Asian corporations themselves contribute about $19 trillion to the world economy each year, according to a report. The continent is home to some of the largest corporations in the world, like Toyota Motor Corporation (NYSE:TM), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), TATA Group, and Reliance Industries, among others.
The Toyota Motor Corporation (NYSE:TM) holds a 12% share of the world’s automobile industry. 11.2 million vehicles were sold by the company in 2023, which secured Toyota Motor Corporation (NYSE:TM)’s status as the top automaker for the fourth successive year. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest producer of semiconductors in the world, holding a 60% share of the global market. In 2023, it even beat the likes of Intel and Samsung in revenue, according to a report.
Race for Power in Asia
Several economic powerhouses in Asia have begun leveraging their financial strength to enhance their military capabilities. According to the Stockholm International Peace Research Institute (SIPRI), about 25% of the world’s military expenditure of $2.2 trillion in 2022 was incurred by Asian countries.
Defense expenditure has spiked 45% in the continent over the past decade, with the steepest rise seen in South Asia (46%) and East Asia (50%) – the two major flashpoints in the region. The threat of China invading Taiwan is higher today than it has ever been. The US has been ramping up its presence in the Indo-Pacific, and has approved sales of weapons worth billions to Taipei lately.
Last year in March, Washington approved the sale of weapons worth $619 million for Taiwan, including 100 AGM-88B HARM and 200 AMRAAM missiles for its F-16 fleet. RTX Corporation (NYSE:RTX) and Lockheed Martin Corporation (NYSE:LMT) are the primary contractors of the deal. South Korea is also set to receive up to 25 F-35 fighter jets developed by Lockheed Martin Corporation (NYSE:LMT) from the US for a deal worth $5 billion, amid increasing aggression from Pyongyang and Beijing.
Oil-rich countries in the Middle East are also racking up their defense capabilities. The trend has picked up pace especially after the Arab Spring of 2010 that rattled several Arab monarchies. Saudi Arabia for instance has become the fifth largest spender on defense, having incurred over $75 billion in 2022, which included a $3 billion agreement with RTX Corporation (NYSE:RTX) to acquire 300 MIM-104E Patriot missiles.
American defense contractors are also expanding their presence in the Middle East, as part of the strategic ties between the US and its Arab allies. Earlier this week, Lockheed Martin Corporation (NYSE:LMT) announced that it had signed agreements with Saudi firms to manufacture parts of its Terminal High Altitude Area Defense (THAAD) missile defense system in the kingdom.
Methodology
Four weighted metrics have been considered to rank the most powerful Asian countries in 2024. These are economic strength (40%), military strength (35%), political power (15%), and cultural influence (10%). We observed where every Asian country ranked on each metric in the region and then assigned them weighted scores for those metrics. Finally, these scores were aggregated to have an overall score. Countries in this article are listed in descending order of their overall scores.
Data on military strength has been sourced from our recent article, 24 Most Powerful Militaries in the World in 2024. To determine economic rank, we referred to IMF’s figures on nominal GDP for 2023. Brand Finance’s Global Soft Power Index 2023 was consulted for political soft power of countries, while we used CEO World’s rankings for cultural influence.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Let’s now head over to the list of the most powerful countries in Asia.
Top 15 Most Powerful Asian Countries in 2024:
15. Pakistan
Economic Strength Rank: 18
Military Strength Rank: 7
Political Power Rank: 19
Cultural Influence Rank: 27
Weighted-Average Ranking: 3.80
Despite ranking low on political soft power and cultural influence, Pakistan is one of the most powerful countries in Asia. It boasts having the thirteenth strongest military in the world (7th in Asia), and an economy that is approaching the $350 billion mark. That being said, the country has generally underachieved for its size and potential, largely due to the volatile political situation at home.
14. Vietnam
Economic Strength Rank: 15
Military Strength Rank: 13
Political Power Rank: 16
Cultural Influence Rank: 14
Weighted-Average Ranking: 3.59
Vietnam is a key manufacturing hub in Southeast Asia, with an economy measured at $433 billion in 2023 by the IMF. The country has been leveraging its economic strength to upgrade its armed forces, with military spending having grown by over 700% in the last decade. Vietnam is ranked 69th, midway, in Brand Finance’s Global Soft Power Index 2023.
13. Iran
Economic Strength Rank: 17
Military Strength Rank: 11
Political Power Rank: 17
Cultural Influence Rank: 5
Weighted-Average Ranking: 3.43
Despite facing sanctions and isolation from much of the world, Iran continues to be one of the most powerful Asian countries, with its economy valued at $366 billion in nominal terms by the IMF. The country’s military is known for its large fleet of tanks and a sizable number of battle-hardened troops, who are over 600,000 in number. Iran, due to its rich history and heritage is the fifth most culturally influential country in Asia, according to CEO World.
12. Taiwan
Economic Strength Rank: 8
Military Strength Rank: 10
Political Power Rank: Not Listed
Cultural Influence Rank: Not Listed
Weighted-Average Ranking: 3.35
With a GDP of over $750 billion, Taiwan is one of the most powerful Asian countries. It is known for being a semiconductor powerhouse, with the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) alone holding 60% of the share in the global market. While the country only has formal diplomatic relations with 12 UN member states, it is a key partner of the United States and its allies in the Indo-Pacific region.
11. Singapore
Economic Strength Rank: 12
Military Strength Rank: 15
Political Power Rank: 6
Cultural Influence Rank: 10
Weighted-Average Ranking: 2.99
Despite being a small city-state, with a population of just over 5 million people, Singapore is among the most powerful countries in Asia. It is also its richest, with a GDP per capita in PPP terms of $133,110 in 2023. You can read more about this in our article, 23 Richest Countries in Asia by GDP Per Capita in 2023. Singapore was ranked 21st on Brand Finance’s Global Soft Power Index 2023, and listed on 39th spot by CEO World for its cultural influence.
10. Thailand
Economic Strength Rank: 10
Military Strength Rank: 14
Political Power Rank: 12
Cultural Influence Rank: 2
Weighted-Average Ranking: 2.73
Next up on our list of the most powerful countries in Asia is Thailand. The country is the tenth largest economy in Asia with a nominal GDP of $512 billion in 2023. It also has a sizable armed forces in terms of manpower and its large fleet of tanks and fighter jets. Thailand is the second most culturally influential country in Asia, according to the CEO World. The country is known for its cuisine and for being a popular tourist destination.
9. Indonesia
Economic Strength Rank: 5
Military Strength Rank: 16
Political Power Rank: 13
Cultural Influence Rank: 12
Weighted-Average Ranking: 2.69
Indonesia is the fifth largest economy in Asia, with a GDP of over $1.4 trillion in 2023. It is the biggest economy in Southeast Asia, and is expected to further grow by 5% in 2024, according to the Asian Development Bank. By 2050, PwC has projected that Indonesia would be the fourth largest economy in the world in terms of purchasing power parity. You can read more on this in our article, 20 Largest Economies in the World by 2050. Indonesia is also the most populous Muslim-majority nation on Earth, which grants it sufficient political clout and cultural influence, especially in the Islamic world.
8. United Arab Emirates
Economic Strength Rank: 11
Military Strength Rank: 12
Political Power Rank: 3
Cultural Influence Rank: 9
Weighted-Average Ranking: 2.49
The United Arab Emirates (UAE) is one of the most powerful Asian countries. It is also the fourth strongest nation in the Middle East, after Turkiye, Saudi Arabia, and Israel. The UAE was ranked as the 10th most politically influential country in the world in Brand Finance’s Global Soft Power Index 2023. The country ranks highly on cultural influence as well, which has greatly been pushed by Dubai’s rise on the world stage as a financial and tourism hub. The UAE also has the 12th strongest military in Asia.
7. Israel
Economic Strength Rank: 9
Military Strength Rank: 6
Political Power Rank: 9
Cultural Influence Rank: 6
Weighted-Average Ranking: 1.91
Next up is Israel, the most technologically advanced country in the Middle East. It is a formidable force in the region, both economically and militarily. Tel Aviv’s strong ties with the United States and its allies have earned the country sufficient political clout in the world. According to the Global Soft Power Index 2023, Israel ranks ninth in Asia on political power. Israel also boasts the 12th most powerful military in the world.
6. Saudi Arabia
Economic Strength Rank: 7
Military Strength Rank: 8
Political Power Rank: 5
Cultural Influence Rank: 11
Weighted-Average Ranking: 1.86
In sixth position is Saudi Arabia, the largest oil producer in the Middle East, and a country that has in recent years leveraged its oil wealth to finance its military ambitions. In 2022, Saudi Arabia was the fifth largest military spender in the world, having incurred over $75 billion on defense expenditure that year. The kingdom is home to Islam’s holiest sites, because of which it enjoys immense influence over the Muslim world.
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Disclosure: None. 15 Most Powerful Asian Countries in 2024 is originally published on Insider Monkey.