MANILA, April 13 -- The Asian Development Bank (ADB) said that developing Asia, which includes China, India, and Southeast Asian region, will grow 7.5 percent this year and 7.3 percent in 2011 on back of a rebound in global trade and ongoing fiscal and monetary stimulus.
In its flagship publication, Asian Development Outlook 2010 ( ADO 2010), released Tuesday, the ADB noted that the strong performances in China and India, the region's economic powerhouses, have improved this year's prospects for most developing Asian economies.
The Manila-based lender added that the fiscal stimulus package and monetary easing policies which Asian economic managers implemented last year at the height of the meltdown will continue to attract investment in the region.
"The stimulus measures last year will continue to fuel investment in the region, while private consumption is likely to increase as income prospects pick up and unemployment declines," the ADB said.
The global meltdown battered most economies in the region, with regional GDP expanding at 5.2 percent -- an eight year low. The weaker demand in ther United States and Europe slackened the export sector -- one of the main engines of growth in the region.
This year, as the global economy recovers, the developing Asian region is also expected to recover. But the region faces several risks, which may rein in its growth potential. These include a slower global recovery, rising commodity prices, deteriorating fiscal positions and uncertainties as to whether private demand can be strong enough to sustain recovery.
This is why, the ADB suggests that government policy makers should implement a timely return to sound and responsible fiscal and monetary policies.
"These served the region well when the crisis broke, and authorities need to adapt them appropriately as recovery takes hold and the crisis recedes," the ADB said.
The ADB said that Asia's policy makers should also improve its monetary, exchange rate, and fiscal policies to sustain recovery over the long term.
"Beyond the crisis, Asia's governments face the challenge of adjusting their monetary, exchange rate, and fiscal policies to better prepare their countries for the changing environment in the post-crisis period," ADB Chief Economist Jong-Wha Lee said in a statement.
The ADO 2010 lists down a number of specific adjustments to monetary, exchange rate, and fiscal policies to help the region better adapt to the post-crisis world. These include strengthening of financial regulation to prevent asset bubbles; promoting of a more flexible foreign exchange rate; and carefully designed capital controls that can help guard against disruptive short-term capital flows and prevent extreme volatility in exchange rates.
Related:
ADB raises its China GDP growth forecast to 9.6% for 2010
In its flagship publication, Asian Development Outlook 2010 ( ADO 2010), released Tuesday, the ADB noted that the strong performances in China and India, the region's economic powerhouses, have improved this year's prospects for most developing Asian economies.
The Manila-based lender added that the fiscal stimulus package and monetary easing policies which Asian economic managers implemented last year at the height of the meltdown will continue to attract investment in the region.
"The stimulus measures last year will continue to fuel investment in the region, while private consumption is likely to increase as income prospects pick up and unemployment declines," the ADB said.
The global meltdown battered most economies in the region, with regional GDP expanding at 5.2 percent -- an eight year low. The weaker demand in ther United States and Europe slackened the export sector -- one of the main engines of growth in the region.
This year, as the global economy recovers, the developing Asian region is also expected to recover. But the region faces several risks, which may rein in its growth potential. These include a slower global recovery, rising commodity prices, deteriorating fiscal positions and uncertainties as to whether private demand can be strong enough to sustain recovery.
This is why, the ADB suggests that government policy makers should implement a timely return to sound and responsible fiscal and monetary policies.
"These served the region well when the crisis broke, and authorities need to adapt them appropriately as recovery takes hold and the crisis recedes," the ADB said.
The ADB said that Asia's policy makers should also improve its monetary, exchange rate, and fiscal policies to sustain recovery over the long term.
"Beyond the crisis, Asia's governments face the challenge of adjusting their monetary, exchange rate, and fiscal policies to better prepare their countries for the changing environment in the post-crisis period," ADB Chief Economist Jong-Wha Lee said in a statement.
The ADO 2010 lists down a number of specific adjustments to monetary, exchange rate, and fiscal policies to help the region better adapt to the post-crisis world. These include strengthening of financial regulation to prevent asset bubbles; promoting of a more flexible foreign exchange rate; and carefully designed capital controls that can help guard against disruptive short-term capital flows and prevent extreme volatility in exchange rates.
Related:
ADB raises its China GDP growth forecast to 9.6% for 2010
BEIJING, April 13 (Xinhua) -- The Asian Development Bank (ADB) Tuesday lifted its forecast for China's 2010 Gross Domestic Product (GDP) growth while lowering its forecast for 2011 on account of expected monetary tightening measures.
ADB estimates China's GDP will grow by 9.6 percent in 2010, higher than the 8.9 percent it forecast last September.Full story
MANILA, April 13 (Xinhua) -- Rising private consumption and investment will support India's economic growth in the next two years, with the country's GDP forecast to grow by 8.2 percent in 2010 and 8.7 percent in 2011, the Asian Development Bank (ADB) said in its latest report.
According to the Asian Development Outlook 2010 (ADO 2010), ADB 's flagship annual economic publication released Tuesday, the normalization of financial market conditions will support a rebound in private investment in 2010. Urban consumption is set to remain strong, with fears of job cuts dissipating amidst substantial new recruitment, and salaries on an upward trend.Full story
No comments:
Post a Comment