Asia poised for growth, needs policy shifts’

MANILA: Asian economies are poised for accelerated growth as the global economic crisis recedes, but recovery remains fragile, China's Xinhua news agency reported quoting experts attending a forum of the Asian Development Bank (ADB) as saying today.

Therefore, carefully calibrated policy adjustments along with increased integration efforts will be needed to sustain growth and cushion the region against future shocks, participants agreed.

A new ADB study, entitled Policy Changes for Asia after the Global Recession, notes that growth in the region is set to quicken this year as the global economy regains strength.

But it also cautioned that recovery in Asia is still overly dependent on policy support from developed economies, while a turnaround in the region's largest market, the United States, has yet to gain traction.



The study, prepared by the Centennial Group International, is one of a series of reports that will be presented at a two-day regional forum on the Impact of the Global Economic and Financial Crisis organised by the ADB at its headquarters in Manila starting Thursday.

Top officials including policymakers, finance ministers, heads of central banks, business leaders and development experts from nearly 20 countries from developing Asia are taking part in the forum.

Addressing the opening ceremony, ADB President Haruhiko Kuroda said, "The region is now showing signs of a V-shaped recovery, with a 6.6 percent growth outlook for this year. While we believe developing Asia is leading the global economic recovery," he said.
However, he added, it is still too early to relax vigorous efforts to restore demand and stabilise financial systems. In particular, exit strategies for fiscal stimulus must be carefully timed."

At a press conference held after the opening ceremony, ADB President Haruhiko Kuroda said, "We must keep in mind that there remains an underlying fragility to the recovery. While China, India, Indonesia and some of the smaller economies are doing quite well, others are still struggling."

This forum provides an important opportunity for developing Asian countries to learn from one another and identify positive solutions for a faster and sustained recovery, he added.

Established in 1966, the ADB has 67 members, 48 from the region. In 2008, it approved US$10.5 billion of loans, US$811.4 million of grant projects, and technical assistance amounting to US$274.5 million. - Bernama