News / Asia

Developing Asian Economies Remain Strong

Heda Bayron

Developing Asian economies will continue to grow strongly this year but will face the risk of surging prices, says the Asian Development Bank’s annual economic outlook released Wednesday.  The bank lauded China’s recent interest rate hike as an appropriate move to tackle inflation.

Rhee Changyong, chief economist of the ADB, says economic growth among developing nations in Asia will average 8 percent both this year and next.

However, economic activity could slow if governments fail to adequately tackle surging food and commodity prices. Pakistan is expected to suffer the highest rate of inflation this year at 16 percent, followed by Vietnam at 13.3 percent.

Rhee says with developing Asia home to two-thirds of the world’s poor, governments need to make inflation a top priority.

On Tuesday, China raised interest rates for the fourth time since October to help curb rising prices. Rhee said China is moving in the right direction.

"Still I believe there is room to tighten monetary policy a little bit more because their policy rate [interest rate] compared with inflation rate is still at a modest level," Rhee said.

India, Indonesia, the Philippines, Thailand and South Korea have also raised interest rates in recent months.

Rhee said the economic impact of the March 11 earthquake and tsunami on the Japanese economy will be large in the next two quarters, but will moderate in the long run as reconstruction spending kicks in.

The earthquake forced some Japanese companies to halt production, disrupting the supply of key materials to other Asian countries. Some international banks have also shifted staff from Tokyo to other financial centers such as Hong Kong and Singapore because of fears of radiation from the crippled Fukushima nuclear power plant.

"Under the assumption that there will be no further deterioration of the nuclear situation, we believe the impact of the Japanese earthquake on other Asian regions will be contained and not very big," Rhee said.

The non-profit lender also said the region needs to develop new sources of growth for the future, such as enhancing trade and investment with other economies in the southern hemisphere. The report finds considerable potential to broaden links between Asia and fast growing emerging economies in Latin America, Africa and the Middle East if policy makers remove barriers to trade and investment.

The bank says Southeast Asia’s economic expansion will slow this year to 5.5 percent from 7.8 percent last year. Indonesia will be the fastest growing economy in the region, at 6.4 percent.

In South Asia, India is expected to continue to expand strongly at 8.2 percent but faces risks from inflation, a drop in private investment and structural constraints such as poor agricultural productivity.

The bank says the resource-rich Central Asian region has been benefiting from high prices for oil and gas, metals, cotton and gold. The region’s growth is forecast to rise by 6.7 percent this year, up from 6.6 percent last year.

You May Like

Is Air Travel Safe?

Aviation expert says despite tragic losses of Malaysian Airlines flights 370 and 17, industry experienced lowest fatality rate in recorded history last year More

Multimedia 100 Days Later, Nigerian Girls Still Held

Activists holding rallies in Nigeria and several other countries to mark 100th day of captivity for more than 200 schoolgirls being held by Boko Haram More

Chocolate Too Bitter? Swap Sugar for Mushrooms

US food technology company develops fermentation process using mushrooms to reduce bitterness in cocoa beans, believes it will cut sugar content in candy More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Carriers Suspend Travel to Israeli
X
Carolyn Presutti
July 23, 2014 1:21 AM
The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video US Carriers Suspend Travel to Israel

The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video NASA Focuses on Earth-Like Planets

For decades, looking for life elsewhere in the universe meant listening for signals that could be from distant civilizations. But recent breakthroughs in space technology refocused some of that effort toward finding planets that may harbor life, even in its primitive form. VOA’s George Putic reports on a recent panel discussion at NASA’s headquarters, in Washington.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video US Awards Medal of Honor for Heroics in Bloodiest of Afghan Battles

U.S. combat troops are withdrawing from Afghanistan, on pace to leave the country by the end of this year. But on Monday, U.S. President Barack Obama took time to honor a soldier whose actions while under fire in Afghanistan earned him the Medal of Honor. VOA's Jeff Seldin has more from the Pentagon.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.
Video

Video Nature of Space Exploration Enters New Age

Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.

AppleAndroid