ADB predicts faster growth in Asian markets

The Asian Development Bank (ADB) has revised its growth forecasts for the region, stating that certain economies will expand by more than previously thought this year.

According to the ADB, the Chinese economy is set to record growth of 8.2 per cent in 2009, up from an initial estimate of seven per cent.

Similarly, the organisation amended its forecast for India from five per cent to six per cent and said that the entire region, excluding Japan, will witness economic expansion of 3.9 per cent.

The ADB stated that growth prospects had been improved by government spending, but warned that withdrawing such stimulus policies too soon could be dangerouis.

’This is not the time for an exit from expansionary policies - the recovery remains fragile and subject to serious downside risks,’ the report explained.

Last week, chairman of the Federal Reserve Ben Bernanke said that the recession in the US is now ’very likely’ over.
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