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Asia advised to pull back on exports

Asia advised to pull back on exports article image

Officials for the Asian Development Bank (ADB) have advised the region to sever its reliance on export-driven growth and instead spend more on reducing poverty. The current economic crisis has adversely affected the region due to its reliance on consumer demand in the most severely affected countries, such as the USA. Attendees at the bank's annual meeting in Indonesia were told to restructure in the face of plunging export demand and continuing poverty for the region. ADB President Haruhiko Kuroda said interest rates on bonds had risen and Asian currencies had depreciated as foreign capital was taken out of emerging markets. "Over the longer term, developing Asia is starting the process of rebalancing growth from excessive dependence on external demand to greater resilience on both consumption and investment," he said. However, he said domestic consumption has sparked some optimism: "Already there are signs that domestic consumption is remaining strong in Asia and may well lead the way out of this downturn."

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