Nusa Dua – The Chinese economy may have already bottomed out and started to recover from the global financial crisis, the Asian Development Bank president said Tuesday.
Haruhiko Kuroda told reporters at the end of the Bank’s annual meeting in Indonesia that there were also strong signs that Japan and South Korea were turning the corner after months of negative growth.
But he said a full recovery in Asia would depend on how quickly the United States and Europe fix their financial sectors in the aftermath of the banking crisis.
“I think in this meeting as well as from various statistics already released, the Chinese economy may have already bottomed out and (entered) the recovery phase,” Kuroda said.
“And very interestingly, the Korean economy in the first quarter of this year made some growth…This is very interesting because it recorded huge negative growth in the fourth quarter of last year.”
He also pointed out that even in Japan, which experienced the worst economic contraction in almost 35 years in the fourth quarter of last year, industrial production has picked up.
“There are some signs of bottoming out or recovery and some economies like China may be on the recovery course and could recover much earlier than other economies,” he said.
But Kuroda said he did not expect Asia to fully emerge from the crisis until the end of 2010, when the ADB has predicted the region will be growing at around six percent compared to just 3,4 percent this year.
A lot would depend on how quickly the major Western economies can stabilize their financial systems to free up international capital markets.
“We have to be very cautions because first the financial sectors in the US and EU must be fixed, they must be stabilized,” he said.

News by International Bali Post

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