Asian development outlook 2015: financing Asia’s future growth
The annual Asian Development Outlook provides a comprehensive analysis of economic performance in the past year and offers forecasts for the next 2 years for the 45 economies in Asia and the Pacific that make up developing Asia. Steady growth in the region is sustained by economic reform at home, soft commodity prices, and reviving demand from the advanced economies. Moderation in the People’s Republic of China as it pursues higher quality growth is balanced by acceleration in Southeast Asia and India, the region’s other reforming giant. Risks to the growth outlook include possible capital outflows under higher interest rates expected this year in the United States, an oil price reversal, and deepening recession in the Russian Federation. This edition makes the case for further developing Asia’s financial sector to broaden access for households and firms to affordable finance that can spur investment, innovation, and inclusive growth. The challenge for policy makers is to strengthen the governance of financial institutions to protect stability while exploring the benefits of flexible regulation that promotes inclusive growth.