Asia set for speedy recovery
Emerging East Asian economies have performed better than anticipated,
thanks to swift policy responses and an improved external environment.
The region is set for a speedy recovery this year and in 2010 according
to ADB's latest economy review.
The Asian Development Bank's (ADB) report released today, forecasted
that the 14 economies of emerging East Asia will grow by 4.2% this year
and by 6.8% in 2010. That is higher than the 3.6% and 6.5% respectively
forecasted for the region in September's update. Emerging East Asia
comprises the 10 economies of the Association of Southeast Asian
Nations plus the People's Republic of China (PRC); Hong Kong, China;
Republic of Korea; and Taipei, China.
"Emerging East Asia is rebounding strongly and growth rates next year
are likely to slightly outpace 2008 in most countries," said Jong-Wha
Lee, ADB's Chief Economist and head of the Office of Regional Economic
Integration which prepared the report. ADB raised its forecast for
growth in developing Asia to 4.5% this year and 6.6% in 2010.
Developing Asia comprises 45 member countries of the ADB.
Meanwhile, ADB now expects growth in India to be 7.0% this year, one
percentage point higher than previously expected, but has kept the 2010
forecast unchanged, also at 7.0%.
"The global economic situation is changing rapidly, necessitating
frequent reassessments. The prospects for much of the region look
rosier than they did in September when we last did a full study of the
region. Fiscal and monetary stimulus policies and a moderate
improvement in the G3 economies of Europe, Japan and the US helped East
Asia and Southeast Asia in particular," said Jong-Wha Lee, ADB's Chief
Economist.