ADB cautious on East Asia recovery

Expressing cautioun on the healthy economic recovery experienced by the emerging East Asian economies, the Asian Development Bank today said it was premature to surmise that the worst was over.

The emerging East Asia region includes 10-member Asean bloc, Hong Kong, South Korea, and Taipei, for which region the ADB has forecast a 6.7 per cent economic grtowth.

Launching the bank's Asia Economic Monitor (AEM) report, Srinivasa Madhur, senior director, ADBs office of regional economic integration, said "While most emerging East Asian economies are assured of a sharp V-shaped recovery this year, it is too early to say that the V stands for victory."

The half-yearly AEM has revised upwards the region's 2010 growth forecast for the 14 emerging East Asian economies to 8.1 per cent from the 7.7 per cent it had projected in April.

It has also raised growth forecast for this year for all developing Asian countries, including the 45 member nations of ADB, to 7.9 per cent from 7.5 per cent made in April.

However, it forecast a moderated growth of 7.2 per cent in 2011 for the region as a whole, which has recovered from the 2009 global economic recession on the back of pickup in domestic demand and resurgence of the global trade.