Top trade experts, economists, businesspeople and ministers from across Asia gathered in Dhaka yesterday to discuss how the fastest growing continent can continue to lead the global economic recovery and maintain its reform momentum. Still smarting from the 2008 financial crisis, the global growth this year is likely to be the same as last year's -- 3.3 percent -- and is expected to rise to 3.8
percent next year, according to the International Monetary Fund. In advanced economies, the growth is forecast to rise to 1.8 percent this year and 2.3 percent next year. But overall growth in emerging markets and developing economies is expected to increase 5.1 percent in 2014 and 5.4 percent in 2015, while average Asian growth will be over 6.2 percent this year and 6.4 percent next year. Bangladesh's economy is expected to grow 6.2 percent this year, the IMF said. Asia is well positioned to meet the challenges ahead, provided it undertakes the required reforms, said the International Chamber of Commerce Bangladesh (ICCB), organiser of the two-day ICC International Conference on Global Economic Recovery: Asian Perspective. The region has strengthened its resilience to global risks and will continue as a source of global economic dynamism, it said. Advertisement "Developing Asia remains the fastest growing region globally. So, Asia's reform momentum must be maintained to ensure the region's position as the global leader," said Bangladesh President M Abdul Hamid, who inaugurated the conference at the Bangabandhu International Conference Centre. He hoped the conference would open up a window of opportunity for exploring the potential of Asian countries and taking proper initiatives for a better Asia. The ICCB said the global economy appears to have reached a far stronger place than two years ago, and is now showing signs of bouncing back. China's growth would open the door for achieving higher growth in Bangladesh and its neighbouring countries, including India and Myanmar, it said in a publication brought out on the occasion. It is imperative that the Asian countries give top priority to the development of an integrated global strategy for sustaining the projected world growth momentum, said the chamber that has organised the conference to mark its 20th year in Bangladesh. There is a need for regulatory reforms and higher infrastructure investments in India, ASEAN, and other parts of Asia, financial system liberalisation, labour and product market reforms in Japan, and tax and spending reforms in many economies. These reforms are critical not only to sustain Asia's growth leadership over the medium term, but also to maintain investor confidence and secure financial stability in the near term, said ICCB President Mahbubur Rahman in his speech. Policy complacency would be penalised due to the risk of further bouts of volatility ahead, the ICCB said. With a possible tightening of global liquidity in the coming days, Asia will face higher interest rates and potential bouts of capital outflow and asset price volatility. In a message, read out by Chief Conference Coordinator Asif Ibrahim, Bangladesh Prime Minister Sheikh Hasina said that as developing Asian countries continue to grow, they face the daunting challenges of providing employment and ensuring that income disparity does not widen. UN Secretary General Ban Ki-moon also sent a message in which he said Asian economies proved resilient during the global financial crisis, leading the recovery of the world economy for the past five years. "Prospects for the region are bright. At the same time, the region faces a number of challenges," he said in the message read out by ICCB Vice President Latifur Rahman, also chairman of Transcom Group. "While most Asian economies are in a strong position to withstand potential financial market instability, further efforts are needed to address existing domestic and external imbalances. "In the longer-run, Asia's continuing success will depend on the ability to transform the current growth model into a model of sustainable development: across the region, economic growth needs to become more inclusive, more equitable, and more environmentally sustainable," said the UN chief. In another message, Roberto Azevedo, director general of the World Trade Organisation, said the topic of the conference could hardly be more important, and there is no doubt that Asia would have a very important role to play. Finance Minister AMA Muhith said many had stated that the century belongs to Asia. "Asia has taken up the challenge to take the world forward. So far, we have done well. “Asia's lead has to be maintained in the global economic recovery in the coming years." The minister termed trade a key element for growth. Victor K Fung, chairman of ICC Research Foundation, said the conference was very timely, as it focused on Asia. "It is pertinent because of Asia's rising economic importance." Commerce Minister Tofail Ahmed said Bangladesh had done miracles in the last four decades. Ridding itself of the ignominious tag "bottomless basket", Bangladesh has become a classic example of development. He praised the businesses and industries for being the driving force in the country's success story. On the last day of the conference today, trade experts, economists and policy makers will sit in three separate sessions at Sonargaon Hotel, and discuss key issues relating to global economic recovery, challenges for Asia and the WTO's Bali outcome.
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