Widening income gap may limit Asia growth: ADB

GROWTH in the developing economies of Asia should accelerate slightly this year and in 2015, but economic and social prospects for the longer term are clouded by widening income disparities in the region, warned the Asian Development Bank (ADB).

While flagging global uncertainties such as the threat of further financial-system shocks and uncertain recovery in advanced economies, the ADB drew attention to emerging Asia's "relatively poor record" in promoting growth with equity, which it says risks limiting future growth and slowing poverty reduction. Developing Asia as a whole (excluding Japan) should achieve gross domestic product (GDP) growth of 6.2 per cent this year and 6.4 per cent in 2015 after an expansion of 6.1 per cent last year, the ADB said in its annual Asian Development Outlook report published yesterday.

"Developing Asia is successfully navigating a challenging global economic landscape and is well positioned to grow steadily over the next two years," said ADB president Takehiko Nakao. "Risks to the outlook have eased compared to the recent past, and policymakers in the region can manage them."