Two faces of Asia's economic success

The world economy is a worry once again.

Sluggish recovery in advanced economies has been aggravated by Europe’s sovereign debt problems and budgetary discord in the United States. Close ties with these markets affect Asia’s exports. Yet, despite this, Asia’s economy continues to thrive.

Asia ’s average annual gross domestic product growth over the past two decades – a robust 8.6 per cent – is the highest worldwide and the source of regional pride. Asia again proved its resilience during the 2008/09 global crisis: Recovery was quick and solid; inflation may be rising but remains manageable; most budgets remain sound; and poverty has declined significantly – between 2005 and 2008 alone, an estimated 150 million exited extreme poverty, defined by the World Bank as living on less than US$1.25 (S$1.50) per day. That trend is continuing, according to a new study by ADB researcher Guanghua Wan.

Released by 27 August 2011 - The Straits Times by Rhee, Changyong - Asian Development Bank’s Chief Economist