Since the global financial crisis, Asia has served as a bulwark of economic and financial stability. Over the next couple of years the region is expected to continue to be one of the world’s primary engines of growth, amid the continuing weakening of a number of advanced economies. And although the region is exposed to considerable downside risks should the crisis in Europe deepen, many countries have ample policy space, and fundamentals are strong.
Nonetheless, Asia faces several medium-term challenges. Surmounting these successfully will be crucial to ensuring that the continent continues to be a world growth leader, thereby increasing its contribution to global economic activity. Of course, in a region as geographically vast and diverse as Asia, different countries face different circumstances and challenges. Nonetheless, some broad issues of significance to the whole region – and beyond – may be identified.
