interregional travel to the Middle East
and to Southeast Asia will be the biggest
drivers. Traffic within South Asia alone is
expected to grow 9.9 percent annually—
the highest growth rate among the
traffic flows published in this forecast.
Air transportation growth is driven largely
by the region’s economic development
and population demographics. South Asia
GDP is forecast to grow at an average
rate of 6.4 percent annually through
2034. India dominates the South Asian
economies, contributing more than 80
percent of the region’s GDP. Economic
liberalization measures are stimulating
the country’s growth. Among these
measures are industrial deregulation,
privatization of state-owned enterprises,
and reduced controls on foreign trade
and investment that began in the early
1990s. India’s GDP is forecast to grow
6.6 percent annually over the 20 years.
The region’s population totaled nearly
1.7 billion in 2014, and a growing share is
entering the workforce. Economic growth
leading to rising incomes underpins the
forecast for strong air travel demand.