ADB chief sees strong Asian recovery in 2010

“ADB's growth forecasts show that we are amid a V-shaped recovery,” he said, adding that estimates for China and India would likely be upgraded.

The ADB in December raised its 2010 growth outlook for the region to 6.6 percent from the 6.4 percent rate it had predicted three months earlier. The outlook includes the 44 developing member economies of the ADB.

Kuroda said that, after the global downturn, some positive trends in the most advanced economies — the United States, Europe and Japan — had “helped the economic recovery in developing Asia.”

Huge stimulus spending by Asian governments also “really initiated and then gave traction to the region's economic recovery,” Kuroda said.

But he warned of risks to the global recovery, such as a possible Greek debt default or a slowdown of the Chinese economy.

“There is concern that the large increases in bank lending in 2009 may be creating asset bubbles, particularly as prices continue to soar” in China, he said. China has injected almost US$600 billion in stimulus measures.

And Kuroda urged Asian nations not to end their stimulus measures too quickly, saying: “Premature policy exits could jeopardize a return to sustainable growth.” But he added: “On the other hand, holding on too long could cause distortions or an unsustainable fiscal deficit.”

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