Jan. 14 – Asian economies are poised for accelerated growth this year but the growth remains fragile and more integration within the region will be needed, says a new study commissioned by the Asian Development Bank (ADB).
According to the Policy Changes for Asia after the Global Recession: Impact of the Global Economy and Policy Implications, growth in the region will quicken this year but warns that Asian recovery remains too dependent on policy support from developed economies.
The study was presented during a two-day regional forum on the impact of the financial crisis organized by ADB at its headquarters in Manila today. ADB President Haruhiko Kuroda said during the opening forum: “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, it is still too early to relax vigorous efforts to restore demand and stabilize financial systems. In particular, exit strategies for fiscal stimulus must be carefully timed.”
He stressed that it is imperative for the region to bring growth back to its higher trajectory to cover the lost ground on poverty reduction, and to support global recovery.
Another report presented during the forum advises Asia to continue to cooperation in the financial sector as a buffer for the developed economies rocky financial situation. It said that efforts at integration should be modest to deliver benefits.
“Policy makers should avoid using up scarce bureaucratic resources and limited political goodwill on huge initiatives which do not yield tangible benefits at the ground level but should instead focus on smaller scale efforts,” this report says.
