Share of rural population APAC 2023, by country

In 2023, approximately 86 percent of the population in Papua New Guinea were living in rural areas. In comparison, approximately eight percent of the population in Japan were living in rural areas that year.

Urbanization and development

Despite the desirable outcomes that urbanization entails, these rapid demographic shifts have also brought about unintended changes. For instance, in countries like India, rapid urbanization has led to unsustainable and crowded cities, with half of the urban population in India estimated to live in slums. In China, population shifts from rural to urban areas have aggravated regional economic disparities. For example, the migration of workers into coastal cities has made possible the creation of urban clusters of immense economic magnitude, with the Yangtze River Delta city cluster accounting for about a fifth of the country’s gross domestic product.

Megacities and their future

Home to roughly 60 percent of the world’s population, the Asia-Pacific region also shelters most of the globe’s largest urban agglomerations. Megacities, a term used for cities or urban areas with a population of over ten million people, are characterized by high cultural diversity and advanced infrastructure. As a result, they create better economic opportunities, and they are often hubs of innovation. For instance, many megacities in the Asia-Pacific region offer high local purchasing power to their residents. Despite challenges like pollution, income inequality, or the rising cost of living, megacities in the Asia-Pacific region have relatively high population growth rates and are expected to expand.