The Asian Development Bank (ADB) has released the annual Asian Development Outlook report for 2015, predicting steady and sustained growth in the region, but highlighting that access to credit and financial services must be improved to address inequalities.
7 April 2015: The Asian Development Bank (ADB) has released the annual Asian Development Outlook report for 2015, predicting steady and sustained growth in the region, but highlighting that access to credit and financial services must be improved to address inequalities.
The three-part report analyzes the impact of lower oil prices on economies in the region, discusses how future growth may be financed, and provides an overview of economic trends and prospects by country, accompanied by statistical data.
The report anticipates increased growth in India, based on recent policy reforms, and in members of the Association of Southeast Asian Nations (ASEAN), partly due to the forthcoming creation of the ASEAN Economic Community in 2016. It forecasts an overall growth rate of 6.3% in the developing countries of the region, with gradual deceleration of growth in China being balanced by strong growth in these other countries.
The authors call for “a deep, robust financial sector” to be created to sustain growth. Illustrating the need for broader coverage of financial services, they note that, on average, fewer than 27% of people in developing countries in the region have a personal bank account, as compared with the global median of 38%. They highlight opportunities for many countries in the region to develop their own bond markets, and they note the potential of new technologies such as biometric identification to bring financial services to rural people and the very poor.
The UN Development Programme (UNDP) and the ADB organized a symposium to discuss the findings of the report on 7 April 2015. Lenni Montiel, UN Department for Economic and Social Affairs (DESA), said promoting inclusive financing requires special efforts for developing countries and the Least Developed Countries (LDCs). Shang-Jin Wei, ADB, noted that more than half the world’s working adults are excluded from formal financial services. Besides access to appropriate financial services, he called for strengthening of financial competencies and consumer empowerment. [Report Webpage] [UNDP Press Release] [Publication: Asian Development Outlook 2015: Financing Asia’s Future Growth]