Asia economy to bounce back next year

August 13, 2009 11:43 am

Asian economy is likely to bounce back from the global economic slump in 2010, but fears remain over the sustainability of growth if there is no wider recovery, stated the Asian Development Bank. 
 
The bank’s Chief Economist Lee Jong-Wha said, “The outlook for East Asia this year remained ‘pessimistic,’ but foresaw a V-shaped recovery led by China. We are optimistic about developing Asia for a V-shape recovery. But the big question is whether it will be sustainable growth.” 
 
Despite an increasing proportion of export demand coming from within Asia, notably China, countries in the region continue to rely on markets in the US, European Union and Japan for 60 per cent final goods exports. 
 
The ADB report recommended a continued focus on loose monetary and fiscal policies to stimulate domestic demand, with support for small enterprises and stimulus packages that must be fast and efficient.