Developing Asia's economy is forecast to grow 4.5 percent this year and 6.6 percent in 2010 thanks to a better-than-expected recovery in the September quarter, the Asian Development Bank said Tuesday.
The revised forecasts are higher than the 3.9 percent and 6.4 percent growth figures made in the bank's Asian Development Outlook in September, it added.
"The prospects for much of the region look rosier than they did in September when we last did a full study of the region," Asian Development Bank (ADB) chief economist Jong-Wha Lee told a news briefing.
He noted that there was "a moderate improvement" in the economies of Europe, Japan and the United States that had helped the region recover.
Forecasts for China remain unchanged from its September forecast of 8.2 percent this year, and 8.9 percent next year.
But while China's growth would continue to steam ahead next year "the speed of that upturn will depend on the performance of the global economy," Lee said.
"The recovery in the G3 (Europe, Japan and US) is still soft and there are a number of downside risks," he said.
"Asia is now leading the recovery from the global recession, but the big question is if this kind of rebound will lead to sustained recovery in 2010," Lee said.
He said the "V-shaped recovery was due to swift policy responses" but also because of the resilience of China and India. India is expected to grow 7.0 percent this year, a percentage point higher than previously forecast.
Lee said governments must sustain the recovery by continuing with stimulus packages they have put in place.
"Timing is very important," he said, stressing that "mis-timed exits" may derail the recovery process.
Copyright 2009 AFP Asian Edition
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