ADB Chief says Asia to fare better than rest of world in credit
crisis
JAPAN: The global financial crisis will have "considerable"
effects on Asia but the region will fare well by world standards, Asian
Development Bank president Haruhiko Kuroda said Thursday.
Developing Asia's economic growth rates will be "comparatively high,"
said Kuroda.
"The financial crisis that happened in the United States and Europe
has not inflicted big damage on Asia's financial system, either directly
or indirectly," he said at an event in Tokyo.
"But the real economy in Japan, the United States and Europe is
slowing down and in some countries the speed is rapid.
Asia's economy cannot help but be affected considerably," he said.
Asian share prices have fallen sharply this week as pessimism engulfs
global markets.
In Indonesia, the stock exchange shut down for two straight sessions.
But Kuroda doubted a replay of the 1997-98 financial crisis in Asia,
when the collapse of the Thai baht set off a chain reaction across the
region with devastating consequences.
"I believe that the possibility of a currency crisis happening again
in Asia is extremely small," Kuroda said.
Experts note that Asian economies have built up large foreign
currency reserves to shield themselves from a repeat of the regional
financial crisis and enjoy low levels of foreign debt.
Tokyo, Thursday, AFP |