ADB sees Asia growth slowing; points to income disparities
11 Apr 2012
The Asian Development Bank has predicted that growth in emerging Asian economies (including India) would cool somewhat this year, although continued growth in the region would easily continue to outpace that in 'developed economies' like Europe, US and Japan.
''The greatest risk to Asia's enviable growth rates in the near term is the sovereign debt crisis in the euro zone,'' ADB stated in its 2012 outlook for the region. ''But Asia is fairly well placed to weather the storm.''
At the same time, ADB warned in a report from its Hong Kong headquarters that the rapid growth in developing Asia is widening the rich-poor divide and income inequality, which could threaten the stability of nations in the region.
The report said that income divisions are rising markedly, where the richest 1 per cent of households account for about 8 per cent of total income in the region.
Close to 20 per cent of total income went to the wealthiest 5 per cent in most countries of the region. The share of income accruing to the richest households has increased over time, the report said.
The report said that worrying inequality has risen in China, India, and Indonesia, the three most populous nations that have driven the region's rapid growth.
Between early 1990 to around 2010, income inequality coefficient in India rose to 37 from 33. This compares to a coefficient of 43 from 32 in China and to 39 from 29 in Indonesia.
