Asia's growth set to accelerate.

• Author: Mallet, Victor
• Position: Asian Development Bank

Asia's developing economies will accelerate their strong recovery from the 1997 financial crisis this year, with aggregate gross domestic product growth rising to 6.8 per cent from a faster-than-expected 6.3 per cent in 2003 according to the Asian Development Bank.

Growth in 2005 is expected to stabilise at 6.7 per cent.

In its annual Asian Development outlook, published earlier this year, the bank forecasts that Asia-Pacific--already the world's most dynamic region--would continue to benefit from growing intra-regional trade powered by China's rapid economic expansion.

The report also says consumer demand, supported by expansionary fiscal policies and low interest rates, is becoming an important contributor to GDP growth in many Asian countries.

"An expanding urban middle class and the relatively young age structure of populations are fundamentally changing consumption behaviour throughout...