MANILA -- Asia's future is bright, but it is not preordained. Policy reforms that augment investment, lead to the adoption of new technologies and enhance productivity must be pursued to increase the growth potential of developing economies in Asia. The urgency of these reforms is accentuated by the challenges and opportunities posed by globalization and advancements in innovation and technology.
Developing Asia is projected to grow 5.3 percent this year and 5.9 percent in 2004, despite soft industrial sectors and uncertainties resulting from the war in Iraq and the outbreak of the severe acute respiratory syndrome (SARS) epidemic. This rate of growth will likely make the Asia-Pacific region the star performer on the world economic stage.
The main drivers of Asia's dynamism will include strong domestic demand, improved export performance partly linked to greater market diversification, increasing intraregional trade and a supportive policy environment.