Asia's economic recovery underway - ADB
Asia's economic recovery is well on its way, according to the Asian Development Bank (ADB)'s Asian Development Outlook 2010. It predicts a robust growth of 7.5% for the region in 2010, well up from 5.2% in 2009, but a slight moderation in 2011 to 7.3% growth. Recovery in global trade and the ongoing effects of fiscal and monetary stimulus will drive the growth also ADB does caution that overall global economic recovery might slowdown once again in 2010 and affect recovery in Asian region.
The ADB report warns that as recovery proceeds, the region faces several risks, including a slower global recovery, with the outlook for the industrialized economies still somewhat uncertain. There is concern that as stimulus measures are unwound, particularly in the major economies, the strength of private demand will not be robust enough to take over.
"Developing Asia's recovery has taken firm hold and a return to stronger and sustainable growth is now in sight if the region can meet the challenge of strengthening domestic demand," says ADB chief economist Jong-Wha Lee.
Prospects improved after better-than-expected growth in the second half of 2009, helped in particular by strong performances of China and India. The stimulus measures of last year will continue to fuel investment in the region, while private consumption is likely to increase as income prospects pick up and unemployment declines.
Traffic at the Hong Kong port showed similar trends going into positive for the first time last year, in the month of December with a 6.2% growth and handling 1.9mn TEU.January 2010 saw a rise of 23.5%, while 20% was recorded in February and 11.4% in March. In total, 21.04 mn TEUs were handled in the Hong Kong port in 2009, down 14% from the previous year.
The ports in Shenzhen saw a rise of 16% in January 2010 handling 1.8mn TEU, 48.4% in February handling 1.5mn TEU and 20.5% in March handling 1.6mn TEU.