ADB chief says Asia to fare better than rest of world in credit crisis

TOKYO, October 9, 2008 (AFP) – The global financial crisis will have “considerable” effects on Asia but the region will fare well by world standards, Asian Development Bank president Haruhiko Kuroda said Thursday. He also downplayed concerns about the economies of Australia and South Korea, saying that the two countries were in good health considering the extent of the global turmoil.

Kuroda said economic growth rates in developing parts of Asia would remain “comparatively high” and voiced hope that the global crisis would come under control “in the coming weeks.”

“The financial crisis that happened in the United States and Europe has not inflicted big damage on Asia’s financial system, either directly or indirectly,” Kuroda told an ADB event in Tokyo.

“But the real economy in Japan, the United States and Europe is slowing down and in some countries the speed is rapid. Asia’s economy cannot help but be affected considerably,” he said.

He argued that the slowdown in the US and European economies “is bound to bring about a slowdown in Asian economies through lower growth in exports.”

Asian share prices have fallen sharply this week as pessimism engulfs global markets. In Indonesia, t