Asia could see economic recovery in 2010: ADB

Asian economies, which have been hit hard by the current global economic crisis are expected to recover by next year if fiscal stimulus measures taken by their governments prove effective, a senior official at the Asian Development Bank has said.     

However, Rejat Nag, MD, ADB Manila, also warned that economic recovery in Asia's export-dependent markets can be delayed until the global trade shows signs of recovery at a faster pace.     

"Asia will lead the way out of the crisis for the rest of the world," said Nag at the World Economic Forum on East Asia in Seoul, projecting a growth of 6 per cent for the Asian region next year, up from an estimated 3.4 per cent growth for the current year.     

"However, Asia is still reliant on the rest of the world," Nag said.     

For decades, East Asia's growth model has been vulnerable to economic turmoil in developed nations in the West because it relies on the buying power of Western economies.     

The current economic crisis provided a rare opportunity for Asia to retool its export-dependent growth model, Nag pointed.     

The International Monetary Fund had recently predicted a 4.8 per cent growth for Asian economies this year and 6.1 per cent for the next year.